Social Responsibility, Consequentialism and Public Policy

Paul-Henri Moisson

No 24-1521, TSE Working Papers from Toulouse School of Economics (TSE)

Abstract: The paper investigates socially responsible investment (SRI) when savers’ moral compass is direct consequentialism. It unveils the determinants of the (positive) green premium under laissez-faire and studies the ability of Pigouvian taxes to deliver the first-best outcome. It characterizes conditions under which, despite leakage, divestment increases social welfare. It describes when best-in-class strategies dominate exclusion. It further demonstrates that, whenever a polluting technology may be cleaned, shareholder activism in the polluting sector may be the morally right action. The paper then conducts the same analysis with two other moral criteria: "shared responsibility" and rule consequentialism, and compares their implications to the ones of direct consequentialism.

Keywords: socially responsible investment; consequentialism; impact investing; green premium; Pigou tax; divestment, shareholder activism (search for similar items in EconPapers)
JEL-codes: A13 D62 H23 Q59 (search for similar items in EconPapers)
Date: 2024-03
New Economics Papers: this item is included in nep-ene and nep-env
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.tse-fr.eu/sites/default/files/TSE/docu ... 2024/wp_tse_1521.pdf Full Text (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:tse:wpaper:124697

Access Statistics for this paper

More papers in TSE Working Papers from Toulouse School of Economics (TSE) Contact information at EDIRC.
Bibliographic data for series maintained by ().