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Title:The environmental and macroeconomic effects of socially responsible investment PDF Logo
Authors:Dam, Lammertjan
Heijdra, Ben J.
Issue Date:2008
Series/Report no.:CESifo working paper 2349
Abstract: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.
Subjects:Socially responsible investment
economic growth
environmental economics
resource dynamics
stock market
Document Type:Working Paper
Appears in Collections:CESifo Working Papers, CESifo Group Munich

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