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|Title:||The environmental and macroeconomic effects of socially responsible investment |
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|
|Document Type:||Working Paper|
|Appears in Collections:||CESifo Working Papers, CESifo Group Munich|
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