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  • 1.
    Lundgren, Tommy
    Umeå University, Faculty of Social Sciences, Umeå School of Business.
    A micro-economic model of corporate social responsibility2011In: Metroeconomica, ISSN 0026-1386, E-ISSN 1467-999X, Vol. 62, no 1, 69-95 p.Article in journal (Refereed)
    Abstract [en]

    This paper explores the economic mechanisms behind corporate social responsibility (CSR) in a microeconomic model of the firm. The study’s motivation is to shed light on the potential causes of the observed phenomena of voluntary over-compliance among firms. We investigate how assumptions about costs and benefits affect CSR behavior through a stock of goodwill capital. In optimum, the firm must balance marginal costs and benefits of investing in CSR. We characterize the equilibrium and examine comparative statics and dynamics from a parameterized model. Finally, we link some of the model’s results to the empirical literature on CSR.

  • 2. Nagashima, Miyuki
    et al.
    Weikard, Hans-Peter
    de Bruin, Kelly Chloe
    Umeå University, Faculty of Social Sciences, Department of Economics.
    Dellink, Rob
    International climate agreements under induced technological change2011In: Metroeconomica, ISSN 0026-1386, E-ISSN 1467-999X, Vol. 62, no 4, 612-634 p.Article in journal (Refereed)
    Abstract [en]

    We examine the impact of technological change on the stability of climate coalitions and explore how international cooperation on abatement affects the incentives of signatories to invest in R&D to reduce emissions. We compare the case of no technological change with exogenous technological change and induced technological change. In the latter case R&D investments are endogenous. We find that the highest equilibrium pay-offs are achieved in the case of induced technological change. Furthermore, the formation of a climate coalition boosts R&D investments in carbon abatement technologies in signatory countries.

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