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Strategic Environmental and Trade Policies with Corporate Environmentalism

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  • Jinji, Naoto

Abstract

The effects of corporate environmentalism are examined in the framework of strategic environmental and trade policies. An environmentally conscious domestic firm competes with a profit-maximizing foreign firm in a third-country market. When emission taxes and export subsidies are both available, the presence of an environmentally conscious firm does not improve domestic welfare. Such a presence reduces domestic welfare when there is transboundary pollution and strong environmental consciousness. When only emission taxes are available, welfare may fall even if pollution is local. When only export subsidies are available, the presence of an environmentally conscious firm may improve domestic welfare.

Suggested Citation

  • Jinji, Naoto, 2005. "Strategic Environmental and Trade Policies with Corporate Environmentalism," Discussion Papers 2004-10, Graduate School of Economics, Hitotsubashi University.
  • Handle: RePEc:hit:econdp:2004-10
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    File URL: http://hermes-ir.lib.hit-u.ac.jp/rs/bitstream/10086/16963/1/070econDP04-10.pdf
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    References listed on IDEAS

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    More about this item

    Keywords

    corporate environmentalism; corporate social responsibility; environmental mixed duopoly; self-regulation; stakeholder approach; strategic environmental and trade policy;

    JEL classification:

    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy

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