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Non‐cooperative and cooperative environmental corporate social responsibility with emission taxes

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  • Lili Xu
  • Sang‐Ho Lee

Abstract

This study examines emission taxes and environmental corporate social responsibility (ECSR) under cooperative and non‐cooperative regimes, respectively, and compares Cournot and Bertrand competitions. We show that (i) there exists substitutability between emission taxes and ECSR, while the cooperative case always yields lower emission taxes and higher ECSR; (ii) environmental damage and social welfare are independent of types of ECSR under Cournot, but both are higher in the cooperative ECSR under Bertrand; and (iii) the cooperative ECSR cannot achieve socially desirable outcomes, whereas the non‐cooperative ECSR is beneficial to society under low marginal damage.

Suggested Citation

  • Lili Xu & Sang‐Ho Lee, 2022. "Non‐cooperative and cooperative environmental corporate social responsibility with emission taxes," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(7), pages 2849-2862, October.
    • Handle: RePEc:wly:mgtdec:v:43:y:2022:i:7:p:2849-2862
    DOI: 10.1002/mde.3567
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    References listed on IDEAS

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    Cited by:

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    2. Xing Mingqing & Lee Sang-Ho, 2024. "The Strategic Adoption of Environmental Corporate Social Responsibility with Network Externalities," The B.E. Journal of Theoretical Economics, De Gruyter, vol. 24(1), pages 399-418, January.
    3. Mauricio G. Villena & María José Quinteros, 2024. "Corporate Social Responsibility, Environmental Emissions and Time-Consistent Taxation," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 87(1), pages 219-255, January.
    4. Chul‐Hi Park & Sang‐Ho Lee, 2023. "Environmental corporate social responsibility under price competition and the second‐mover advantage: An endogenous timing approach," International Journal of Economic Theory, The International Society for Economic Theory, vol. 19(4), pages 817-829, December.
    5. Xu, Lili & Matsumura, Toshihiro, 2022. "Welfare-reducing price competition under relative performance delegation with convex costs," Economic Modelling, Elsevier, vol. 112(C).
    6. Xu, Lili & Zhao, Qinghong & Chen, Yuyan & Lee, Sang-Ho, 2023. "Post privatization of high-speed rail with corporate social responsibility (CSR) in an international transportation market: Mandatory CSR versus voluntary CSR," Economics of Transportation, Elsevier, vol. 35(C).
    7. Bárcena-Ruiz, Juan Carlos & Garzón, María Begoña & Sagasta, Amagoia, 2023. "Environmental corporate social responsibility, R&D and disclosure of “green” innovation knowledge," Energy Economics, Elsevier, vol. 120(C).

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