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

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  • Dongdong Li
  • Leonard F. S. Wang

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.

Suggested Citation

  • Dongdong Li & Leonard F. S. Wang, 2022. "Does environmental corporate social responsibility (ECSR) promote green product and process innovation?," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(5), pages 1439-1447, July.
    • Handle: RePEc:wly:mgtdec:v:43:y:2022:i:5:p:1439-1447
    DOI: 10.1002/mde.3464
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    References listed on IDEAS

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    Cited by:

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    2. Buccella, Domenico & Fanti, Luciano & Gori, Luca, 2024. "Corporate Social Responsibility: A theory of the firm revisited with environmental issues," GLO Discussion Paper Series 1421, Global Labor Organization (GLO).
    3. Meixia Wang & Yunxia Wang, 2024. "Does Factor Market Distortion Inhibit Enterprise Innovation? Empirical Evidence from Chinese Industrial Enterprises," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(3), pages 12830-12853, September.
    4. Zhao‐Yong Sun & Meng‐Jie Li & Dongdong Li, 2023. "Carbon performance and corporate financial performance: The moderating role of consumer awareness of corporate social responsibility," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 44(1), pages 663-670, January.
    5. Biancardi, Marta & Iannucci, Gianluca & Villani, Giovanni, 2024. "Water dynamics and environmental social practice in a differential game," Socio-Economic Planning Sciences, Elsevier, vol. 92(C).

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