Does corporate social responsibility create value? : environmental friendly production in a two-sector OLG-model
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
|Date of creation:||2004|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: +31 50 363 7185
Fax: +31 50 363 3720
Web page: http://ccso.eldoc.ub.rug.nl/Email:
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:dgr:rugccs:200405. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Joke Bulthuis)
If references are entirely missing, you can add them using this form.