Green firm, brown production

Rupayan Pal, A.M. Tanvir Hussain () and Prasenjit Banerjee ()
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A.M. Tanvir Hussain: University of FreiburgGrowth
Prasenjit Banerjee: University of Manchester

Indira Gandhi Institute of Development Research, Mumbai Working Papers from Indira Gandhi Institute of Development Research, Mumbai, India

Abstract: In a theoretical model of an environmentally conscious ("green") monopolist, we show that increasing greenness does not always mean lower output and environmental damages. We assume that a green firm can internalize environmental externalities in its decision making process and/or invest in cleaner production technology and management practices. We also find that our results hold regardless of whether consumers value the firm's pro-environmental actions or not.

Keywords: monopoly; environmental concern; green technology; internalizing externalities; environmental damage (search for similar items in EconPapers)
JEL-codes: D42 Q50 (search for similar items in EconPapers)
Pages: 20 pages
Date: 2018-03
New Economics Papers: this item is included in nep-agr, nep-ene and nep-env
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Persistent link: https://EconPapers.repec.org/RePEc:ind:igiwpp:2018-011

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