Environmental Options and Technological Innovation: An Evolutionary Game Model
AbstractThis paper analyses the effects on economic agents' behaviour of an innovative environmental protection mechanism that the Public Administration of a tourist region may adopt to attract visitors while protecting the environment. On the one hand, the Public Administration sells to the tourists an environmental call option that gives them the possibility of being (partially or totally) reimbursed if the environmental quality in the region turns out to be below a given threshold level. On the other hand, it offers the firms that adopt an innovative, non-polluting technology an environmental put option that allows them to get a reimbursement for the additional costs imposed by the new technology if the environmental quality is above the threshold level. The aim of the paper is to study the dynamics that arise with this financial mechanism from the interaction between the economic agents and the Public Administration in an evolutionary game context.
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Bibliographic InfoPaper provided by Fondazione Eni Enrico Mattei in its series Working Papers with number 2009.90.
Date of creation: Oct 2009
Date of revision:
Environmental Bonds; Call and Put Options; Technological Innovation; Evolutionary Dynamics;
Other versions of this item:
- Angelo Antoci & Simone Borghesi & Marcello Galeotti, 2013. "Environmental options and technological innovation: an evolutionary game model," Journal of Evolutionary Economics, Springer, vol. 23(2), pages 247-269, April.
- Angelo Antoci & Simone Borghesi & Marcello Galeotti, 2009. "Environmental options and technological innovation: an evolutionary game model," Working Papers - Mathematical Economics 2009-04, Universita' degli Studi di Firenze, Dipartimento di Scienze per l'Economia e l'Impresa.
- C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games
- D62 - Microeconomics - - Welfare Economics - - - Externalities
- G10 - Financial Economics - - General Financial Markets - - - General (includes Measurement and Data)
- O30 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - General
- Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy
This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-11-14 (All new papers)
- NEP-ENV-2009-11-14 (Environmental Economics)
- NEP-EVO-2009-11-14 (Evolutionary Economics)
- NEP-GTH-2009-11-14 (Game Theory)
- NEP-KNM-2009-11-14 (Knowledge Management & Knowledge Economy)
- NEP-TUR-2009-11-14 (Tourism Economics)
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.:
- Perrings,Charles, 1987. "Economy and Environment," Cambridge Books, Cambridge University Press, number 9780521340816, December.
- Costanza, Robert & Perrings, Charles, 1990. "A flexible assurance bonding system for improved environmental management," Ecological Economics, Elsevier, vol. 2(1), pages 57-75, April.
- Perrings, Charles, 1989. "Environmental bonds and environmental research in innovative activities," Ecological Economics, Elsevier, vol. 1(1), pages 95-110, February.
- Jorgen W. Weibull, 1997. "Evolutionary Game Theory," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262731215, January.
- Angelo Antoci & Marcello Galeotti & Davide Radi, 2011.
"Financial Tools for the Abatement of Traffic Congestion: A Dynamical Analysis,"
Society for Computational Economics, vol. 38(3), pages 389-405, October.
- Angelo Antoci & Marcello Galeotti & Davide Radi, 2011. "Financial tools for the abatement of traffic congestion: a dynamical analysis," Working Papers - Mathematical Economics 2011-01, Universita' degli Studi di Firenze, Dipartimento di Scienze per l'Economia e l'Impresa.
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