The environmental and macroeconomic effects of socially responsible investment

Lammertjan Dam and Ben Heijdra ()

Post-Print from HAL

Abstract: We analyze the effects of socially responsible investment and public abatement on environmental quality and the economy in a continuous-time dynamic growth model featuring optimizing households and firms. Environmental quality is modelled as a renewable resource. Consumers can invest in government bonds or firm equity. Since investors feel partly responsible for environmental pollution when holding firm equity, they require a premium on the return to equity. We show that socially responsible investment behaviour by households partially offsets the positive effects on environmental quality of public abatement policies.

Keywords: H23; M14; O16; O41; Q21; Socially responsible investment; Economic growth; Environmental economics; Resource dynamics; Stock market (search for similar items in EconPapers)
Date: 2011-08-19
Note: View the original document on HAL open archive server: https://hal.science/hal-00851862
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (13)

Published in Journal of Economic Dynamics and Control, 2011, 35 (9), pp.1424. ⟨10.1016/j.jedc.2011.05.005⟩

Downloads: (external link)
https://hal.science/hal-00851862/document (application/pdf)

Related works:
Journal Article: The environmental and macroeconomic effects of socially responsible investment (2011)
Working Paper: The Environmental and Macroeconomic Effects of Socially Responsible Investment (2008)
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:hal:journl:hal-00851862

DOI: 10.1016/j.jedc.2011.05.005

Access Statistics for this paper

More papers in Post-Print from HAL
Bibliographic data for series maintained by CCSD ().