Does environmental corporate social responsibility (ECSR) promote green product and process innovation?

Dongdong Li and Leonard F. S. Wang

Managerial and Decision Economics, 2022, vol. 43, issue 5, 1439-1447

Abstract: We develop a dynamic model to investigate the effects of environmental corporate social responsibility (ECSR) on a monopolist's investments in green product and process innovation. We find that ECSR increases the steady‐state investments of green product and process innovation only when the weight a firm gives to pollution is large, while ECSR does not affect the complementarity (substitutability) relationship between green product and process innovation in the long run. To achieve a socially optimal investment in green product innovation, the government should urge the firm to pay more attention to the environment than to the consumer surplus.

Date: 2022
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https://doi.org/10.1002/mde.3464

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Persistent link: https://EconPapers.repec.org/RePEc:wly:mgtdec:v:43:y:2022:i:5:p:1439-1447

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