NO : WP-2018-011
AUTHOR : Rupayan Pal, A.M.T. Hussain and Prasenjit Banerjee
TITLE : Green firm, brown production
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.
Keywords : monopoly, environmental concern, green technology, internalizing externalities, environmental damage
JEL Code : D42, Q50