Journal ArticleDOI
Toward a theoretical model of voluntary overcompliance
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In this article, the authors explain why some firms voluntarily overcomply with environmental regulation by arguing that consumers value environmental quality but differ in their willingness to pay which depends on their income levels.Abstract:
We explain why some firms voluntarily overcomply with environmental regulation. In our model all consumers value environmental quality but differ in their willingness to pay which depends on their income levels. Publicly available information on environmental performance of firms enables consumers to identify clean firms. Firms participate in a two-stage duopoly game where they first choose their levels of cleaning technology and next engage in price competition. The market gets segmented by income levels. A minimum standard binding on the dirty firm has the effect of improving the performance of the cleaner firm. A subsidy obtains the same competitive outcome.read more
Citations
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Economic Perspectives on Corporate Social Responsibility
TL;DR: The authors synthesize the expanding corporate social responsibility (CSR) literature from an economic perspective and develop a CSR taxonomy that connects disparate approaches to the subject and explore whether CSR should exist and investigate conditions when CSR may produce higher welfare than other public good provision channels.
Journal ArticleDOI
Information As Regulation: The Effect of Community Right to Know Laws on Toxic Emissions
Shameek Konar,Mark A. Cohen +1 more
TL;DR: The authors examined firm behavior in response to disclosures of toxic release inventory (TRI) emissions and found that firms with the largest stock price decline on the day this information became public subsequently reduced emissions more than their industry peers, consistent with the view that financial markets may provide strong incentives for firms to change their environmental behavior.
Journal ArticleDOI
EPA's voluntary 33/50 program: Impact on toxic releases and economic performance of firms
Madhu Khanna,Lisa A Damon +1 more
TL;DR: In this paper, the authors examined the motivations for participation in the voluntary 33/50 Program and the program's impact on the toxic releases and economic performance of firms in the U.S. chemical industry.
Journal ArticleDOI
Research on Organizations and the Natural Environment, 1992-Present: A Review:
TL;DR: The literature on organizations and the natural environment, published since 1992, is reviewed, with the purpose of determining if and what the contributions have been to strategy and organizational theory.
Posted Content
Why do firms volunteer to exceed environmental regulations? : Understanding participation in EPA's 33/50 program
TL;DR: In this paper, the authors examined participation in EPA's 33/50 program to assess the potential for voluntary environmental regulation to achieve improvements in environmental performance and found that large firms with the greatest toxic releases are most likely to participate.
References
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Book
The Theory of Industrial Organization
TL;DR: The Theory of Industrial Organization as discussed by the authors is the first primary text to treat the new industrial organization at the advanced-undergraduate and graduate level Rigorously analytical and filled with exercises coded to indicate level of difficulty, it provides a unified and modern treatment of the field with accessible models that are simplified to highlight robust economic ideas.
Posted Content
The Theory of Environmental Policy
TL;DR: In this article, Baumol and Oates provide a rigorous and comprehensive analysis of the economic theory of environmental policy and present a formal, theoretical treatment of those factors influencing the quality of life.
Journal ArticleDOI
Price competition, quality and income disparities
TL;DR: In this paper, the authors considered a non-cooperative market where consumers are assumed to make indivisible and mutually exclusive purchases and the dependence of the latter on income distribution and quality parameters is analyzed.
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Why do firms volunteer to exceed environmental regulations? : Understanding participation in EPA's 33/50 program
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Madhu Khanna,Lisa A Damon +1 more