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Porter's Hypothese zur Umweltpolitik in einem Oligopol mit asymmetrischen Kosten

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  • Eberhard Feess

    ()
    (Johann Wolfgang Goethe-Universität Frankfurt/Main)

  • Gregor Taistra

    ()
    (Kreditanstalt für Wiederaufbau, Frankfurt)

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    Abstract

    Porter's hypothesis that a national leadership in environmental policy can increase the international competitiveness of domestic industries is analyzed in a two-period model with Cournot competition. It is assumed that an environmentally friendly technology leads to a decrease of unit costs in the second period. We demonstrate that a leadership can trigger the adoption of a green technology that increases the domestic firm's profits even if aggregated unit costs are higher, and if the firm does not innovate voluntarily. The optimal domestic policy, the timing of the foreign firm's innovation, and the effect of environmental policy on the firms' profits all depend on three factors: the probability that the policy is imitated, the difference in unit costs caused by the different technologies, and the significance of different unit costs depending on the inverse demand function. Environmental policy, strategic trade policy, Porter hypothesis.

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    Bibliographic Info

    Article provided by Justus-Liebig University Giessen, Department of Statistics and Economics in its journal Journal of Economics and Statistics.

    Volume (Year): 220 (2000)
    Issue (Month): 1 ()
    Pages: 18-31

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    Handle: RePEc:jns:jbstat:v:220:y:2000:i:1:p:18-31

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    Related research

    Keywords: Environmental Policy; strategic trade policy; Porter hypothesis;

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