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International trade and corporate environmental responsibility

Author

Listed:
  • Haitao Cheng

    (Jinhe Center for Economic Research, Xi'an Jiaotong University; HIAS, Hitotsubashi University)

Abstract

We investigate corporate environmental responsibility (CER) in the context of international trade and emission permit competition between two countries. Our analysis reveals that CER does not affect the issuance of emission permits or the resulting emissions in these countries. However, a higher level of CER enhances firms' private profits. These findings suggest that firms may adopt CER voluntarily to increase their profitability.

Suggested Citation

  • Haitao Cheng, 2025. "International trade and corporate environmental responsibility," Economics Bulletin, AccessEcon, vol. 45(4), pages 1809-1817.
    • Handle: RePEc:ebl:ecbull:eb-25-00294
    as

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    References listed on IDEAS

    as
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    JEL classification:

    • F1 - International Economics - - Trade
    • G3 - Financial Economics - - Corporate Finance and Governance

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