Strategic Behavior and the Environment > Vol 6 > Issue 1-2

The Impacts of Other-Regarding Preferences and Ethical Choice on Environmental Outcomes: A Review of the Literature

Ngo Van Long, Department of Economics, McGill University, Canada, ngo.long@mcgill.ca
 
Suggested Citation
Ngo Van Long (2016), "The Impacts of Other-Regarding Preferences and Ethical Choice on Environmental Outcomes: A Review of the Literature", Strategic Behavior and the Environment: Vol. 6: No. 1-2, pp 1-35. http://dx.doi.org/10.1561/102.00000065

Published: 15 Dec 2016
© 2016 N. V. Long
 
Subjects
Environmental Economics
 
Keywords
JEL Codes: Q31Q42
Corporate governanceKantian equilibriumother-regarding preferencespositional externalities
 

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In this article:
Introduction
Envy and Status Concern: Implications for the Environment and Natural Resources
Altruism, Inequality Aversion, and Corporate Environmentalism: Effects on the Environment
The Kantian Motive and its Implications for the Environment
Conclusions and Directions for Future Research
References

Abstract

This paper reviews the literature concerning the impacts of other-regarding preferences and ethical choice on environmental outcomes when agents behave strategically. We consider two types of other-regarding preferences: (i) envy or status concern, (ii) altruism and inequality aversion. We contrast these preference-based approaches with the ethical approach in which some choices are made on ethical ground and thus are not necessarily utility-maximizing. Models exhibiting other-regarding preferences do not yield unambiguous results concerning the effects of strategic behavior on the environment. In contrast, models in which choices are motivated by Kantian ethics display more robust results.

DOI:10.1561/102.00000065