The monopolist is not the best environmentalist's best friend: An example

► We examine second-degree price discrimination for a monopolized product tied with environmental quality. ► Marginal valuations of environmental quality and the good itself are positively related across consumers. ► The monopolist degrades environmental quality too much when it is optimal to serve both low- and high-demand consumers. ► This may explain why the environment is not sufficiently protected in very popular sites supplying recreational activities.