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Environmental innovation and the cost of pollution abatement

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Author Info
BRECHET, Thierry
JOUVET, Pierre-AndrŽ

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Abstract

The impact of environmental innovation on the marginal pollution abatement cost at the Þrm 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 Þnd that adopting an environmental friendly tech- nology may lead to more pollution and less proÞt at the Þrm level.

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Paper provided by Université catholique de Louvain, Center for Operations Research and Econometrics (CORE) in its series CORE Discussion Papers with number 2006040.

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Date of creation: 01 Apr 2006
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Handle: RePEc:cor:louvco:2006040

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Related research
Keywords: 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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  1. Montero, Juan-Pablo, 2002. "Permits, Standards, and Technology Innovation," Journal of Environmental Economics and Management, Elsevier, vol. 44(1), pages 23-44, July. [Downloadable!] (restricted)
  2. McKitrick, Ross, 1999. "A Derivation of the Marginal Abatement Cost Curve," Journal of Environmental Economics and Management, Elsevier, vol. 37(3), pages 306-314, May. [Downloadable!] (restricted)
  3. Palmer, Karen & Oates, Wallace E & Portney, Paul R, 1995. "Tightening Environmental Standards: The Benefit-Cost or the No-Cost Paradigm?," Journal of Economic Perspectives, American Economic Association, vol. 9(4), pages 119-32, Fall. [Downloadable!] (restricted)
  4. Fischer, Carolyn & Parry, Ian W. H. & Pizer, William A., 2003. "Instrument choice for environmental protection when technological innovation is endogenous," Journal of Environmental Economics and Management, Elsevier, vol. 45(3), pages 523-545, May. [Downloadable!] (restricted)
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Maria Eugenia, SANIN & Skerdilajda, ZANAJ, 2007. "Environmental innovation under Cournot competition," Discussion Papers (ECON - Département des Sciences Economiques) 2007031, Université catholique de Louvain, Département des Sciences Economiques. [Downloadable!]
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This page was last updated on 2009-12-16.

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