Environmental innovation and the cost of pollution abatement
AbstractThe impact of environmental innovation on the marginal pollution abatement cost at the ﬁrm level is investigated. We show that the common assumption that innovation reduces the marginal abatement cost is wrong. We draw some implications about the incentives to innovate under environmental regulation. In particular, we ﬁnd that adopting an environmental friendly tech- nology may lead to more pollution and less proﬁt at the ﬁrm level.
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Bibliographic InfoPaper provided by Université catholique de Louvain, Center for Operations Research and Econometrics (CORE) in its series CORE Discussion Papers with number 2006040.
Date of creation: 00 Apr 2006
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innovation; pollution abatement cost; production function; environmen- tal regulation.;
Find related papers by JEL classification:
- H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
- L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
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