Advanced Search
MyIDEAS: Login to save this paper or follow this series

Strategic Environmental Policy and the Accumulation of Knowledge

Contents:

Author Info

  • Thomas Ziesemer

    ()
    (University of Augsburg, Department of Economics)

  • Peter Michaelis

    ()
    (University of Augsburg, Department of Economics)

Registered author(s):

    Abstract

    Recent political discussions about the possible advantages of first-mover behaviour in terms of environmental policy again called attention to the well-established controversy about the effects of environmental regulation on international competitiveness. Conventional theory claims that the trade-off between regulation and competitiveness will be negative while the revisionist view, also known as the Porter Hypothesis, argues for the opposite. Several previous attempts that analysed this quarrel by means of strategic trade game settings indeed support the former claim and conclude that, to increase a firm’s competitiveness, ecological dumping is the most likely outcome in a Cournot duopoly configuration. However, these results were derived from one period games in which so-called innovation offsets are unlikely to occur. The present paper considers a two-period model that includes an intertemporally growing firm-level knowledge capital. In doing so the accumulation of knowledge is modelled in a unilateral and a bilateral variant. It is shown that for both scenarios in period 1 the domestic government will set a higher emission tax rate compared to its foreign counterpart. Furthermore, we identify conditions for which the domestic tax rate will be set above the Pigouvian level in period 1 in both model variants.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: http://www.wiwi.uni-augsburg.de/globalbusinessmanagement/Diskussionspapiere/GBM_Paper_0803_Ziesemer_Michaelis.pdf
    Our checks indicate that this address may not be valid because: 404 Not Found. If this is indeed the case, please notify (Sebastian Krispin)
    Download Restriction: no

    Bibliographic Info

    Paper provided by University of Augsburg, competence center for global business management in its series Diskussionsreihe "Global Business Management" with number 4.

    as in new window
    Length: 35 pages
    Date of creation: Mar 2008
    Date of revision:
    Handle: RePEc:auh:wpaper:0004

    Contact details of provider:
    Web page: http://www.wiwi.uni-augsburg.de/globalbusinessmanagement/
    More information through EDIRC

    Related research

    Keywords: first-mover behaviour; Porter Hypothesis; strategic environmental policy; environmental regulation; international competitiveness;

    Find related papers by JEL classification:

    This paper has been announced in the following NEP Reports:

    References

    No references listed on IDEAS
    You can help add them by filling out this form.

    Citations

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:auh:wpaper:0004. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sebastian Krispin).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.