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Environmentally-Responsible Demand: Irresponsible Lobbying?

Author

Listed:
  • Olimpia Cutinelli Rendina

    (PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, PJSE - Paris Jourdan Sciences Economiques - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, Collège de France - Chaire Economie des institutions, de l'innovation et de la croissance - CdF (institution) - Collège de France)

  • Sonja Dobkowitz

    (Universität Bonn = University of Bonn)

  • Antoine Mayerowitz

    (PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, Collège de France - Chaire Economie des institutions, de l'innovation et de la croissance - CdF (institution) - Collège de France)

Abstract

How do firms respond to rising environmental concerns of consumers? We investigate this question for the automotive industry in the US using a shift-share instrumental variable approach. We construct a novel dataset at the firm-level to instrument changes in household preferences with natural disasters. Our findings suggest that firms not only engage in cleaner innovation but also increase their lobbying on environmental topics. We show that the increase in environmental lobbying and clean patenting follow the same dynamics which points to a complementarity between the two strategies. These results can be understood as firms using lobbying to increase the value of clean patents: higher environmental standards tailored to the firm's new clean technologies diminish the competition the firm faces.

Suggested Citation

  • Olimpia Cutinelli Rendina & Sonja Dobkowitz & Antoine Mayerowitz, 2024. "Environmentally-Responsible Demand: Irresponsible Lobbying? ," Post-Print hal-04502992, HAL.
    • Handle: RePEc:hal:journl:hal-04502992
    Note: View the original document on HAL open archive server: https://college-de-france.hal.science/hal-04502992
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    References listed on IDEAS

    as
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