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Community pressure for green behavior

Heyes, A. and Kapur, Sandeep (2012) Community pressure for green behavior. Journal of Environmental Economics and Management 64 (3), pp. 427-441. ISSN 0095-0696.

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Official URL: http://dx.doi.org/10.1016/j.jeem.2012.04.006

Abstract

The desire to avoid rousing community hostility may encourage firms to behave in an environmentally responsible manner. Firms may engage in corporate social responsibility (CSR) to maintain community support and/or to regain the support of a community where it has been lost. It has been conjectured that such ‘informal regulation’ could effectively replace formal intervention in some settings, and usefully complement it in others. We explore these conjectures with mixed results. Informal regulation is necessarily less efficient than a well-designed formal alternative and the pattern of green behavior induced by the threat of community hostility may increase or decrease welfare. The existence of community pressure may increase or decrease the optimal calibration of a formal intervention (in this case an environmental tax) and may complement or detract from the incentives generated by an optimally calibrated tax.

Item Type: Article
Keyword(s) / Subject(s): Community pressure, Informal regulation, Corporate social responsibility
School or Research Centre: Birkbeck Schools and Research Centres > School of Business, Economics & Informatics > Economics, Mathematics and Statistics
Depositing User: Administrator
Date Deposited: 10 Sep 2012 10:06
Last Modified: 17 Apr 2013 12:24
URI: http://eprints.bbk.ac.uk/id/eprint/5077

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