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Brief Description
Lyon and Maxwell present an accessible theory of corporate environmentalism.
Learn More about the Book
Drawing on prior work on corporate environmentalism, Thomas Lyon and John Maxwell argue that corporate environmentalism is the result of firms attempting to anticipate public policy changes and influence the legislative process in their best interests. Presenting a general framework that highlights the links between corporate environmentalism and public policy, they use analytical tools of positive political economy and game theory to provide insights into corporate strategy and the effects of corporate and government policies on overall social welfare.
About the Authors
Thomas P. Lyon is Professor at the Kelley School of Business, Indiana University, Bloomington. He is the editor of the forthcoming volume Regulation (2004). His primary research interest is the interplay between corporate strategy and public policy and he has served as a consultant to business and to government in these areas.
John W. Maxwell is Associate Professor at the Kelley School of Business, Indiana University. His primary research focus is the political economy of environmental regulation, and the impact of corporate behaviour on the development and enforcement of environmental regulations.
Review Quotes
1. "Lyon and Maxwell are uncommonly inquisitive economists who set about in this fine book to show what is happening in the practice of corporate environmental behavior and how that squares with the predictions of the theory they quite usefully develop. Anyone interested in serious thinking about "corporate social responsibility" will benefit from their treatment." Paul R. Portney, President, Resources for the Future
2. 'A common joke has economists saying, 'It works in practice, but will it work in theory?' Lyon and Maxwell are uncommonly inquisitive economists who set about in this fine book to show what is happening in the practice of corporate environmental behavior and how that squares with the predictions of the theory they quite usefully develop. Anyone interested in serious thinking about 'corporate social responsibility' will benefit from their treatment.' Paul R Portney, President, Resources for the Future
3. 'Drawing on game theory and classical economic models of regulation, Lyon and Maxwell advance our understanding of the relationships among companies, governments, and environmental activists that shape the environmental behavior of firms. Their book is critical reading for environmentalists, government officials, and scholars who need to understand why hard-nosed managers might practice corporate environmentalism, and whether society at large actually benefits from that behavior.' Forest Reinhardt, John D. Black Professor of Business Administration, Harvard Business School
4. 'This book is the best example of how serious economic theory can be used to tackle many practical and relevant environmental problems. The authors do not only adopt the usual regulators' viewpoint, whose goal is to correct market imperfections. In addition, this book pays a lot of attention to business incentives and to how free markets can profitably adopt self-regulation measures. As a consequence a wide range of policy strategies emerges. This book is a valuable reading for both private and public decision makers.' Carlo Carraro, Professor of Economics, University of Venice and Research Director Fondazione ENI E Mattei, Venice
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