英文摘要 |
The well-known result that price rather than quantity competitiondelivers a higher amount of output and consequently higher social welfaremay not hold in a polluting industry. This paper examines firms’ incentivesfor undertaking strategic ECSR activities under quantity and pricecompetition, respectively. Compared to the equilibrium outcome underprice competition, we find that the firms produce fewer outputs, chargehigher prices, invest more in ECSR activities, and discharge less emissionunder quantity competition. In other words, while a higher output levelincreases consumer surplus, a lower level of ECSR investment intensifiesenvironmental damage. Due to the trade-off between consumer surplusand environmental damage, social welfare is higher under quantitycompetition if the marginal environmental damage is too large. |