 Non-cooperative and cooperative environmental R&D risk choices under environmental corporate social responsibility guidelinesMingqing Xing and Sang-Ho Lee Innovation and Green Development, 2025, vol. 4, issue 2 Abstract: This study investigates environmental R&D (ER&D) risk choice by polluting duopoly firms under environmental corporate social responsibility (ECSR) guideline. We show that the ER&D risk level under cooperative ER&D is always higher than under non-cooperative ER&D, resulting in a higher expected consumer surplus and lower expected environmental damage. We also demonstrate that the firm's expected profit depends on the level of ECSR while a firm's expected value under cooperative ER&D is higher than that under non-cooperative ER&D, which creates a conflict of interest between the shareholders' expected private value and the stakeholders' expected public value. Our analysis suggests that the government should appropriately align ECSR guideline in accordance with emission tax rate, by considering firms' coordination of cooperative or non-cooperative ER&D activities on their risk choices. Keywords: Non-cooperative environmental R&D; Cooperative environmental R&D; Risk choice; Environmental corporate social responsibility (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:ingrde:v:4:y:2025:i:2:s2949753125000050 DOI: 10.1016/j.igd.2025.100208 Access Statistics for this article Innovation and Green Development is currently edited by Hai-Jie Wang and Chun-Ping Chang More articles in Innovation and Green Development from Elsevier |
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