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Non‐cooperative and cooperative environmental R&D under environmental corporate social responsibility with green managerial coordination

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  • Mingqing Xing
  • Sang‐Ho Lee

Abstract

We consider a polluting Cournot duopoly within a managerial delegation framework and examine conflicting environmental concerns in which the owners pursue strategic environmental corporate social responsibility (ECSR) while the managers undertake diverged environmental research and development (ER&D) investment. We investigate the effects of cooperation in both ECSR and ER&D on a firm's profitability and social welfare and find that managerial coordination has a critical effect on industry emissions, profits, and welfare. In the context of an optimal emissions tax, we show that managerial coordination failure might not occur, but it reduces welfare if the environmental damage is relatively high. We conclude that a pro‐environmental government should encourage cooperative ER&D, especially when owners adopt cooperative ECSR.

Suggested Citation

  • Mingqing Xing & Sang‐Ho Lee, 2023. "Non‐cooperative and cooperative environmental R&D under environmental corporate social responsibility with green managerial coordination," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 44(5), pages 2684-2696, July.
    • Handle: RePEc:wly:mgtdec:v:44:y:2023:i:5:p:2684-2696
    DOI: 10.1002/mde.3842
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    Cited by:

    1. He Liang & Xiaomin Sun & Yanli Guo, 2025. "Corporate Social Responsibility Decision-Making Considering Multiple Factors in a Duopoly Model," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 27(68), pages 214-214, February.
    2. Tianli,, 2024. "Endogenous choice of corporate social responsibility and emissions tax: What impact do green consumers have on economic welfare?," International Review of Economics & Finance, Elsevier, vol. 96(PA).
    3. Lili Xu & Sang‐Ho Lee, 2023. "Cournot–Bertrand comparisons under double managerial delegation contracts with sales and environmental incentives," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 44(6), pages 3409-3421, September.

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