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Taxation and The Crowding-Out Effect of Corporate Social Responsibility

Author

Listed:
  • Jérôme Ballet

    (C3ED - Centre d'économie et d'éthique pour l'environnement et le développement - UVSQ - Université de Versailles Saint-Quentin-en-Yvelines)

  • Damien Bazin

    (C3ED - Centre d'économie et d'éthique pour l'environnement et le développement - UVSQ - Université de Versailles Saint-Quentin-en-Yvelines)

  • Abraham Lioui

    (Department of Economics [Israël] - Bar-Ilan University [Israël])

  • David Touahri

    (LEST - Laboratoire d'Economie et de Sociologie du Travail - AMU - Aix Marseille Université - CNRS - Centre National de la Recherche Scientifique)

Abstract

We address in this paper the issue of the existence or not of a crowding-out effect of Corporate Social Responsability by government intervention through a lump sum tax. For this purpose, we build a model of impur altruism for firms. We show that in general it will happen to be that public policy crowds out corporate (private) contribution but the crowding-out will not be complete. Two interesting findings are that i) the intensity of the crowding-out depends upon the relative performance of the government in producing the public good and ii) that public policy has an impact on wages in the economy since it is the opportunity cost for firms that spend time on Corporate Social Responsibility.

Suggested Citation

  • Jérôme Ballet & Damien Bazin & Abraham Lioui & David Touahri, 2006. "Taxation and The Crowding-Out Effect of Corporate Social Responsibility," Working Papers halshs-00113856, HAL.
    • Handle: RePEc:hal:wpaper:halshs-00113856
    Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-00113856
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    References listed on IDEAS

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    Cited by:

    1. Bazin, Damien, 2009. "What exactly is corporate responsibility towards nature?: Ecological responsibility or management of nature?: A pluri-disciplinary standpoint," Ecological Economics, Elsevier, vol. 68(3), pages 634-642, January.

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