EconPapers    
Economics at your fingertips  
 

Does corporate social responsibility create value?: environmental friendly production in a two-sector OLG-model

Lammertjan Dam

No 200405, CCSO Working Papers from University of Groningen, CCSO Centre for Economic Research

Abstract: In this paper we analyze how the choice between "clean" and "polluting" consumer goods affects environmental quality in an overlapping generations model. Consumers can choose between two, from a consumption perspective identical goods. However, one is produced in an environmentally friendly manner, the other is produced without taking environmental issues into consideration. The production of the former is assumed to be more costly in the sense that "green" firms are less productive and consequently they also charge a higher price for the good in equilibrium. Our model shows that the existence of "green" firms creates value through this allocating mechanism, in which society makes a trade-off between the level of productivity and the level of environmental quality. Although in the long-run the dirty sector does not necessarily vanish, only growth in the clean sector is sustainable

Date: 2004
References: Add references at CitEc
Citations Track citations by RSS feed

Downloads: (external link)
http://irs.ub.rug.nl/ppn/265948657 (application/pdf)

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:gro:rugccs:200405

Access Statistics for this paper

More papers in CCSO Working Papers from University of Groningen, CCSO Centre for Economic Research Contact information at EDIRC.
Series data maintained by Hanneke Tamling ().

 
Page updated 2017-10-18
Handle: RePEc:gro:rugccs:200405