Corporate Social Responsibility Strategy, Environment and Energy Policy

This paper investigates corporate social responsibility activities within the environmental realm, with particular focus on the case of energy industry. Comparing corporate social responsibility strategies in a differentiated duopoly with substitute products and eco-R&D, it shows that consumer-friendliness are significant, both production and profit will increase when the energy tax is imposed, but consumer surplus will decrease. Furthermore, if the rate of energy tax is not redundant, both prices of Low-energy-consuming products and common product will be reduced, resulting in a more conspicuous cost advantage to the firm adopting eco-R&D. (C) 2018 Elsevier B.V. All rights reserved.