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Haitao Cheng
 
''International trade and corporate environmental responsibility''
( 2026, Vol. 0 No.0 )
 
 
We investigate corporate environmental responsibility (CER) in the context of international trade and emission permit competition between two countries. Our analysis reveals that CER does not affect the issuance of emission permits or the resulting emissions in these countries. However, a higher level of CER enhances firms' private profits. These findings suggest that firms may adopt CER voluntarily to increase their profitability.
 
 
Keywords: Corporate environmental responsibility, Monopolistic competition, Emission permit competition, Emission tax competition, Internal carbon price
JEL: F1 - Trade: General
G3 - Corporate Finance and Governance: General
 
Manuscript Received : Jun 10 2025 Manuscript Accepted : Jan 06 2026

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