1,720,984 research outputs found
Lipschitz continuity of value functions for a class of state constained stochastic problems
No full textEconomic growth and the environment with clean and dirty consumption
No full textThis paper aims to verify the existence of the Environmental Kuznets Curve (EKC) or inverted U-shaped relationship between economic growth and environmental degradation in the context of endogenous growth. An important feature of this study is that the EKC is examined in the presence of pollution as a by product of consumption activities; also, pollution is a stock variable rather than a flow and tends to accumulate over time. In order to highlight the role of consumption on the environment, consumers do not consider directly pollution in the maximization problem and are assumed to choose between two different consumption types, characterized by a different impact on the environment (i.e. dirty and clean consumption). We find that substitution of dirty consumption with clean consumption alone is not sufficient to reduce environmental pollution. The result depends on the product differentiation and the cost to achieve it. From a social welfare perspective, more environmental awareness is unambiguously desirable when it generates less pollution. However, it could be that more environmental awareness leads to a lower level of social welfare depending on the costs of product differentiation and social marginal damage of pollution
The dynamics of ethical product differentiation and the habit formation of socially responsible consumers
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Consumer driven market mechanisms to fight inequality: the case of CSR/product differentiation models with asymmetric information
No full textCorporate social responsability and profit volatility: theory and empirical evidence
No full textCorporate social responsibility (CSR) implies extra care for the well-being of stakeholders different from shareholders. In our theoretical model we show that, when this principle implies that more CSR-oriented companies incorporate stakeholders’ well-being constraints, it translates into higher sensitivity of profits to economic shocks. Our empirical analysis finds support for this hypothesis showing that CSR attributes which relate to positive contributions to stakeholders’ well-being significantly and positively affect idiosyncratic profit volatility. Our findings remain robust when controlled for endogeneity with instrumental variable estimates
Corporate social responsability and profit maximizing behaviour
Full text linkWe examine the behavior of a profit maximizing monopolist in a horizontal differentiation model in which consumers differ in their degree of social responsibility (SR) and consumers SR is dynamically influenced by habit persistence. The model outlines parametric conditions under which (consumer driven) corporate social responsibility is an optimal choice compatible with profit maximizing behavior
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