Villena, Mauricio (2019): What Corporate Social Responsibility Motivations are better for The Environment?
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Abstract
Is it always the case that an environmental friendly CSR firm will be preferred to a consumer caring CSR-firm in terms of the environmental damage generated in the market?. Will always an environmental friendly CSR firm be preferred to a firm which concerns only with profit maximization?. We explore these questions by analizyng a duopoly market setting in which a CSR firm interacts with a profit maximizing firm. Unlike previous literature, we consider different motivations for the CSR firm: (i) the CSR firm acts as a consumer-friendly firm, cares for not only its profits but also consumer surplus, as a proxy of its concern for its "stakeholders" or consumers; (ii) the CSR firm main objective is a combination of its own profit and the environment, caring for the environmental damage produced by the market in which it interacts; and (iii) the CSR firm is both consumer and environmental friendly. As benchmark we also consider the case in which both firms in the duopoly only concern about material profits, evaluating for all cases the environmental damage generated in their market interaction.
Item Type: | MPRA Paper |
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Original Title: | What Corporate Social Responsibility Motivations are better for The Environment? |
English Title: | What Corporate Social Responsibility Motivations are better for The Environment? |
Language: | English |
Keywords: | Corporate social responsibility, consumer-friendly firm, environment-friendly firm, Mixed Duopoly, Emission Taxation |
Subjects: | H - Public Economics > H2 - Taxation, Subsidies, and Revenue > H23 - Externalities ; Redistributive Effects ; Environmental Taxes and Subsidies |
Item ID: | 100281 |
Depositing User: | Mauricio G. Villena |
Date Deposited: | 11 May 2020 11:55 |
Last Modified: | 14 Aug 2024 22:53 |
References: | Brand, B., Grothe, M. (2015). Social Responsibility in a Bilateral Monopoly. Journal of Economics 115, pp.275-289. Carlsson, F. and O. Johansson-Stenman (2012). Behavioral economics and environmental policy. Annual Review of Resource Economics 4: 75-99. Garcia, A., Leal, M., & Lee, S. H. (2018). Time-inconsistent environmental policies with a consumer-friendly firm: tradable permits versus emission tax. International Review of Economics & Finance, 58, 523-537. Goering, G. E. (2014), "The Profit-Maximizing Case for Corporate Social Responsibility in a Bilateral Monopoly," Managerial and Decision Economics 35, pp.493-499. Kopel, M. and B. Brand (2012), "Socially Responsible Firms and Endogenous Choice of Strategic Incentives," Economic Modelling 29, pp.982-989. Leal, M., A. Garcia and S.H. Lee (2018), "The Timing of Environmental Tax Policy with a Consumer-friendly Firm," Hitotsubashi Journal of Economics 59, pp.25-43. Liu, C.C., L. Wang and S.H. Lee (2015), "Strategic Environmental Corporate Social Responsibility in a Differentiated Duopoly Market," Economics Letters 129, pp.108-111. Liu, Q., L. Wang and C.L. Chen (2018), "CSR in an Oligopoly with Foreign Competition: Policy and Welfare implications," Economics Modelling 72, pp.1-7. Matsumura, T. and A. Ogawa (2014), "Corporate Social Responsibility or Payoff Asymmetry? A Study of an Endogenous Timing Game," Southern Economic Journal 81, pp.457-473. Villena, M.G. (2019). Corporate Social Responsibility and Optimal Pigouvian Taxation. MPRA Paper No. 100035. https://mpra.ub.uni-muenchen.de/100035/1/MPRA_paper_100035.pdf Wang, L.F.S., Y.C. Wang and L. Zhao (2012), "Tariff Policy and Welfare in an International Duopoly with Consumer-Friendly Initiative," Bulletin of Economic Research 64, pp.56-64. Xu, L and S.H.Lee (2018) "Corporate Social Responsibility And Environmental Taxation With Endogenous Entry", Hitotsubashi Journal of Economics 59, pp.61-82. |
URI: | https://mpra.ub.uni-muenchen.de/id/eprint/100281 |
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What Corporate Social Responsibility Motivations are better for The Environment? (deposited 10 May 2020 15:35)
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