Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/26394
Authors: 
Dam, Lammertjan
Heijdra, Ben J.
Year of Publication: 
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
JEL: 
H23
M14
O16
O41
Q21
Document Type: 
Working Paper

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