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Noncooperative and Cooperative Environmental Corporate Social Responsibility

Author

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  • Kosuke Hirose
  • Sang-Ho Lee
  • Toshihiro Matsumura

Abstract

We formulate several quantity and price competition models that investigate the adoption of environmental corporate social responsibility (ECSR) by firms competing in the market. First, we consider emission cap commitments. Under quantity competition, ECSR is adopted by joint-profit-maximizing industry associations because of its effect of weakening quantity competition. However, it is not adopted without industry associations. By contrast, under price competition, individual firms voluntarily adopt ECSR without the industry associations and they choose a higher level of ECSR with the industry associations. Second, we consider emission intensity commitments (commitment to per-output emissions) and find that it is less likely to restrict market competition.

Suggested Citation

  • Kosuke Hirose & Sang-Ho Lee & Toshihiro Matsumura, 2020. "Noncooperative and Cooperative Environmental Corporate Social Responsibility," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 176(3), pages 549-571.
    • Handle: RePEc:mhr:jinste:urn:doi:10.1628/jite-2020-0035
    DOI: 10.1628/jite-2020-0035
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    More about this item

    Keywords

    corporate social responsibility; anticompetitive effect; emission cap; emission intensity;
    All these keywords.

    JEL classification:

    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility
    • Q57 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Ecological Economics
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets

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