The environmental and macroeconomic effects of socially responsible investment

Arbeitspapier

We analyze the effects of socially responsible investment and public abatement on environmental quality and the economy in a continuous-time dynamic growth model featuring optimizing households and firms. Environmental quality is modelled as a renewable resource. Consumers can invest in government bonds or firm equity. Since investors feel partly responsible for environmental pollution when holding firm equity, they require a premium on the return to equity. We show that socially responsible investment behaviour by households partially offsets the positive effects on environmental quality of public abatement policies.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: CESifo Working Paper ; No. 2349

Classification and Topics

• Classification: Wirtschaft ; Taxation and Subsidies: Externalities; Redistributive Effects; Environmental Taxes and Subsidies ; Corporate Culture; Diversity; Social Responsibility ; Economic Development: Financial Markets; Saving and Capital Investment; Corporate Finance and Governance ; One, Two, and Multisector Growth Models ; Renewable Resources and Conservation: Demand and Supply; Prices
• Subject: Socially responsible investment ; economic growth ; environmental economics ; resource dynamics ; stock market ; Ethische Geldanlage ; Kapitalanlage ; Umweltbewusstsein ; Umweltpolitik ; Umweltschutzinvestition ; Wirtschaftspolitische Wirkungsanalyse ; Umweltschutz ; Erneuerbare Ressourcen ; Wachstumstheorie ; Theorie

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Dam, Lammertjan ; Heijdra, Ben J.
• Event: Veröffentlichung
• (who): Center for Economic Studies and ifo Institute (CESifo)
• (where): Munich
• (when): 2008

Further information

• Handle: http://hdl.handle.net/10419/26394
• Last update: 10.03.2025, 11:42 AM CET