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Green firm, brown production

Author

Listed:
  • Rupayan Pal

    (Indira Gandhi Institute of Development Research)

  • A.M. Tanvir Hussain

    (University of FreiburgGrowth)

  • Prasenjit Banerjee

    (University of Manchester)

Abstract

In a theoretical model of an environmentally conscious ("green") monopolist, we show that increasing greenness does not always mean lower output and environmental damages. We assume that a green firm can internalize environmental externalities in its decision making process and/or invest in cleaner production technology and management practices. We also find that our results hold regardless of whether consumers value the firm's pro-environmental actions or not.

Suggested Citation

  • Rupayan Pal & A.M. Tanvir Hussain & Prasenjit Banerjee, 2018. "Green firm, brown production," Indira Gandhi Institute of Development Research, Mumbai Working Papers 2018-011, Indira Gandhi Institute of Development Research, Mumbai, India.
    • Handle: RePEc:ind:igiwpp:2018-011
    as

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    File URL: http://www.igidr.ac.in/pdf/publication/WP-2018-011.pdf
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    monopoly; environmental concern; green technology; internalizing externalities; environmental damage;
    All these keywords.

    JEL classification:

    • D42 - Microeconomics - - Market Structure, Pricing, and Design - - - Monopoly
    • Q50 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - General

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