A5015484840- Regulation and Compliance Studies
- Environmental Sustainability in Business
- Corporate Social Responsibility Reporting
- Climate Change Policy and Economics
- Auction Theory and Applications
- Law, Economics, and Judicial Systems
- Merger and Competition Analysis
- Political Influence and Corporate Strategies
- Public Procurement and Policy
- Global trade, sustainability, and social impact
- Energy, Environment, and Transportation Policies
- Economic and Environmental Valuation
- Corporate Finance and Governance
- Energy, Environment, Economic Growth
- Sustainable Supply Chain Management
- Electric Power System Optimization
- Digital Platforms and Economics
- Management and Organizational Studies
- Economic theories and models
- Economic Policies and Impacts
- Wildlife Conservation and Criminology Analyses
- Consumer Market Behavior and Pricing
- Environmental Justice and Health Disparities
- Media Influence and Politics
- Corruption and Economic Development
Ross School
2014-2024
University of Michigan
2014-2024
Michigan United
2012-2024
Resources For The Future
2019
Université de Montpellier
2019
Université Paris Cité
2019
Environmental Research Institute of Michigan
2006-2016
Çankaya University
2008
Indiana University
1990-2004
Indiana University Bloomington
1991-2004
We develop an economic model of “greenwash,” in which a firm strategically discloses environmental information and activist may audit penalize the for disclosing positive but not negative aspects its profile. fully characterize model's equilibria, derive variety predictions about disclosure behavior. rationalize conflicting results empirical literature, finding nonmonotonic relationship between firm's expected performance disclosures. Greater pressure deters greenwash, induces some firms to...
Corporate claims about environmental performance have increased rapidly in recent years, as has the incidence of greenwash, that is, communication misleads people into forming overly positive beliefs an organization’s practices or products. References to greenwash literature grown since term was introduced more than 2 decades ago, with a sharp increase articles 2011. We review and synthesize this fragmented multidisciplinary literature, showing is broad umbrella encompasses variety specific...
We extend the economic theory of regulation to allow for strategic self‐regulation that preempts political action. When “entry” is costly consumers, firms can deter it through voluntary restraints. Unlike standard entry models, deterrence achieved by overinvesting raise rival's welfare in event entry. Empirical evidence on releases toxic chemicals shows an increased threat (as proxied membership conservation groups) indeed induces reduce releases. establish conditions under which...
Corporate greenwashing has accelerated in recent years, bringing its wake growing skepticism about corporate green claims. Although a theory of the drivers and deterrents begun to emerge, it is static nature does not incorporate full range ways which firms can misrepresent their environmental performance. Our contribution threefold. First, we extend organizational information disclosure possibility undue modesty firm’s environmental, social, governance practices. Second, hypothesize...
This article surveys the growing theoretical literature on motives for and welfare effects of environmental corporate social responsibility (CSR). We show how both market nonmarket forces are making CSR profitable, also discuss altruistic CSR. In particular, nongovernmental organizations strongly influence activities, through public private politics. can have varied effects, from attracting green consumers or investors, to preempting government regulation, encouraging regulation that burdens...
Renewable portfolio standards (RPSs) for electricity generation are politically popular in many U.S. states although economic analysis suggests they not first-best policies. We present an empirical of the political and factors that drive state governments to adopt RPS, lead inclusion in-state requirements given adoption RPS. Although advocates claim RPS will stimulate job growth, we find with high unemployment rates slower Local environmental conditions preferences have no significant effect...
Corporate sustainability has gone mainstream, and many companies have taken meaningful steps to improve their own environmental performance. But while corporate political actions such as lobbying can a greater impact on quality, they are ignored in most current metrics. It is time for these metrics be expanded critically assess firms based the impacts of public policy positions. To enable assessments, must become transparent about responsibility (CPR) social (CSR). For part, rating systems...
In many markets, governments set minimum quality standards while some sellers compete on the basis of by exceeding them. Such leadership strategies often win public acclaim, especially when they involve environmental attributes. Using a duopoly model vertical product differentiation, we show that if high‐quality firm can commit to level before regulations are promulgated, it induces regulator weaken standards, and welfare falls. Our results raise doubts about social benefits corporate...
Environmental “public voluntary programs” (PVPs) involve government offers of positive publicity and technical assistance to firms that reach certain environmental goals. A growing body empirical work suggests these programs generally have little impact on the behavior their participants. natural policy conclusion would be eliminate PVPs, but we argue such a is premature. Many PVPs are best viewed as information diffusion programs, so identifying effects econometrically difficult because...
We study markets in which consumers prefer green products but cannot determine the environmental quality of any given firm's product on their own. A nongovernmental organization (NGO) can establish a voluntary standard and label that comply with it. Alternatively, industry create its own label. compare stringency these two types labels, strategic interaction when they coexist. find even error‐free benefits may be smaller labels than NGO alone, we characterize competition is more likely to...
Abstract This paper presents the first empirical test of financial impacts institutional investor activism towards climate change. Specifically, we study conditions under which share prices are increased for Financial Times (FT) Global 500 companies due to participation in Carbon Disclosure Project (CDP), a consortium investors with $57 trillion assets. We find no systematic evidence that participation, and itself, shareholder value. However, by making use Russia’s ratification Kyoto...
This article reviews the economic literature on voluntary approaches to environmental regulation. In last few years there has been a rapid growth in use of actions and programs address concerns. These can be placed into three general categories: (1) Unilateral commitments by industrial firms, sometimes referred as business-led corporate programs, (2) Public schemes, which participating firms agree standards that have developed public bodies such agencies, (3) Negotiated agreements created...
We study three corporate nonmarket strategies designed to influence the lobbying behavior of other special interest groups: (1) astroturf, in which firm covertly subsidizes a group with similar views lobby when it normally would not; (2) bear hug, overtly pays alter its activities; and (3) self‐regulation, voluntarily limits potential social harm from activities. All reduce informativeness lobbying, all payoff public decision‐maker. show that decision‐maker benefit by requiring disclosure...
Corporate-level environmental information disclosure is increasingly common. This article studies the impact of a prominent media-generated sustainability ratings program, Newsweek’s 2009 ranking 500 largest U.S. firms. Using an event study methodology, authors find rankings had significant on shareholder value. Firms in top 100 experienced abnormal returns after release that were 0.6%–1.0% higher than firms bottom 400. The form released effects as well. Nuanced score variables no...
Many companies are adopting environmentally friendly management practices in developed countries. However, the benefits of a corporate environmental strategy less clear emerging (developing and transition) economies, where regulations may be poorly enforced social pressures to comply weak. Thus it is important for business leaders, policymakers, activists understand causes consequences these economies so that they able implement effective strategies, develop useful policies, promote...