IDEAS home Printed from https://ideas.repec.org/p/gro/rugccs/200405.html
   My bibliography  Save this paper

Does corporate social responsibility create value? : environmental friendly production in a two-sector OLG-model

Author

Listed:
  • Dam, Lammertjan

    (Groningen University)

Abstract

In this paper we analyze how the choice between "clean" and "polluting" consumer goods affects environmental quality in an overlapping generations model. Consumers can choose between two, from a consumption perspective identical goods. However, one is produced in an environmentally friendly manner, the other is produced without taking environmental issues into consideration. The production of the former is assumed to be more costly in the sense that "green" firms are less productive and consequently they also charge a higher price for the good in equilibrium. Our model shows that the existence of "green" firms creates value through this allocating mechanism, in which society makes a trade-off between the level of productivity and the level of environmental quality. Although in the long-run the dirty sector does not necessarily vanish, only growth in the clean sector is sustainable

Suggested Citation

  • Dam, Lammertjan, 2004. "Does corporate social responsibility create value? : environmental friendly production in a two-sector OLG-model," CCSO Working Papers 200405, University of Groningen, CCSO Centre for Economic Research.
    • Handle: RePEc:gro:rugccs:200405
    as

    Download full text from publisher

    File URL: http://irs.ub.rug.nl/ppn/265948657
    Download Restriction: no
    ---><---

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gro:rugccs:200405. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Hanneke Tamling (email available below). General contact details of provider: https://edirc.repec.org/data/ferugnl.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.