International trade and corporate environmental responsibility

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

Economics Bulletin, 2025, vol. 45, issue 4, 1809 - 1817

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.

Keywords: Corporate environmental responsibility; Monopolistic competition; Emission permit competition; Emission tax competition; Internal carbon price (search for similar items in EconPapers)
JEL-codes: F1 G3 (search for similar items in EconPapers)
Date: 2025-12-30
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