This paper studies the incentives to adopt Environmental Corporate Social Responsibility (ECSR) in a multiproduct monopoly. In our framework, products are horizontally differentiated, production is polluting and a time-consistent government levies a tax on emissions. The ECSR monopolist may invest in R&D activities to reduce polluting emissions, while emission-reducing innovation may spillover from one product to the other. We show that the monopolist has no incentive to engage in ECSR, unless a regulatory measure is introduced. By contrast, a time consistent tax induces the adoption of a ECSR statute. Under admissible parameter conditions, profits are concave and single-peaked in the ECSR intensity. Finally, ECSR monotonically increases social welfare, by raising consumer surplus and curbing environmental damage.

Lambertini L., Tampieri A. (2023). On the private and social incentives to adopt environmentally and socially responsible practices in a monopoly industry. JOURNAL OF CLEANER PRODUCTION, 426, 1-11 [10.1016/j.jclepro.2023.139036].

On the private and social incentives to adopt environmentally and socially responsible practices in a monopoly industry

Lambertini L.;
2023

Abstract

This paper studies the incentives to adopt Environmental Corporate Social Responsibility (ECSR) in a multiproduct monopoly. In our framework, products are horizontally differentiated, production is polluting and a time-consistent government levies a tax on emissions. The ECSR monopolist may invest in R&D activities to reduce polluting emissions, while emission-reducing innovation may spillover from one product to the other. We show that the monopolist has no incentive to engage in ECSR, unless a regulatory measure is introduced. By contrast, a time consistent tax induces the adoption of a ECSR statute. Under admissible parameter conditions, profits are concave and single-peaked in the ECSR intensity. Finally, ECSR monotonically increases social welfare, by raising consumer surplus and curbing environmental damage.
2023
Lambertini L., Tampieri A. (2023). On the private and social incentives to adopt environmentally and socially responsible practices in a monopoly industry. JOURNAL OF CLEANER PRODUCTION, 426, 1-11 [10.1016/j.jclepro.2023.139036].
Lambertini L.; Tampieri A.
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/11585/948168
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