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Common ownership and environmental Corporate Social Responsibility

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  • Hirose, Kosuke
  • Matsumura, Toshihiro

Abstract

This study theoretically examines the effect of common ownership on emission levels when firms can use environmental CSR as a commitment device to soften competition. Specifically, we investigate how common ownership (or the extent of cooperation in an industry) affects firms’ voluntary commitment to emission restrictions and emissions abatement activities in an oligopoly. The results show that common ownership reduces emissions by reducing output and may stimulate emissions abatement activities if the degree of common ownership is small. However, significant common ownership always reduces emissions abatement activities. Additionally, common ownership may or may not improve welfare, depending on the implicit carbon cost.

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  • Hirose, Kosuke & Matsumura, Toshihiro, 2022. "Common ownership and environmental Corporate Social Responsibility," Energy Economics, Elsevier, vol. 114(C).
    • Handle: RePEc:eee:eneeco:v:114:y:2022:i:c:s014098832200398x
    DOI: 10.1016/j.eneco.2022.106269
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    Cited by:

    1. Liu, Yi & Matsumura, Toshihiro, 2022. "Welfare effects of common ownership in an international duopoly," MPRA Paper 115177, University Library of Munich, Germany.
    2. Xu, Lili & Zhang, Yidan & Matsumura, Toshihiro, 2022. "Cournot–Bertrand comparison under common ownership in a mixed oligopoly," MPRA Paper 114644, University Library of Munich, Germany.
    3. Hirose, Kosuke & Matsumura, Toshihiro, 2023. "Green transformation in oligopoly markets under common ownership," Energy Economics, Elsevier, vol. 126(C).
    4. Lili Xu & Yidan Zhang & Toshihiro Matsumura, 2023. "Competition mode and common ownership in a mixed oligopoly," Manchester School, University of Manchester, vol. 91(4), pages 306-319, July.

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    More about this item

    Keywords

    Corporate social responsibility; Anticompetitive effect; Voluntary emissions cap; Emissions abatement; Common ownership;
    All these keywords.

    JEL classification:

    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility
    • Q57 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Ecological Economics
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets

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