Corporate Environmentalism in Dynamic Oligopoly

Akihiko Yanase ()

Strategic Behavior and the Environment, 2013, vol. 3, issue 3, 223-250

Abstract: This study investigates how an increase in the firms' environmental consciousness affects the environment and economic welfare in the presence of dynamic oligopolistic competition where firms' objective may include the society's damage from stock pollution as well as their profits. If all firms are symmetric, an increase in the environmental consciousness reduces consumer surplus and social welfare in the short-run. However, profits may increase if the firms are initially less environmentally conscious. The long-run effects are similar to the short-run ones except for the effect on social welfare because pollution stock is reduced in the steady state. In the case of asymmetric firms, an increase in the polluting firms' environmental consciousness reduces their output whereas it increases the clean firms' output. The clean firms become better off, but depending on the relative number of polluting firms versus clean firms, the polluting firms' profits may increase or decrease.

Keywords: Corporate environmentalism; Differential game; Environmental consciousness (search for similar items in EconPapers)
JEL-codes: C73 L13 L21 (search for similar items in EconPapers)
Date: 2013
References: Add references at CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://dx.doi.org/10.1561/102.00000030 (application/xml)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:now:jnlsbe:102.00000030

Access Statistics for this article

More articles in Strategic Behavior and the Environment from now publishers
Bibliographic data for series maintained by Lucy Wiseman ().