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R&D Cooperation, Innovation Spillovers and Firm Location in a Model of Environmental Policy

Author

Listed:
  • Carraro, C.
  • Soubeyran, A.

Abstract

In this paper the reaction of firms to the introduction of environmental charges in a given industry is analysed. Firms may decide either to relocate their plants abroad or to adopt a new environmental-friendly technology. The latter can be either developed by investing in R&D or obtained by buying a licence. We show that, even if domestic firms share the same initial technology, at the equilibrium they make different choices in reponse to the same environmental policy.

Suggested Citation

  • Carraro, C. & Soubeyran, A., 1998. "R&D Cooperation, Innovation Spillovers and Firm Location in a Model of Environmental Policy," G.R.E.Q.A.M. 98a43, Universite Aix-Marseille III.
    • Handle: RePEc:fth:aixmeq:98a43
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    Cited by:

    1. Richard Hartl & Peter Kort, 1996. "Capital accumulation of a firm facing an emissions tax," Journal of Economics, Springer, vol. 63(1), pages 1-23, February.
    2. Jacobsen, Henrik Klinge, 2001. "Technological progress and long-term energy demand -- a survey of recent approaches and a Danish case," Energy Policy, Elsevier, vol. 29(2), pages 147-157, January.
    3. Carlo Carraro, 1998. "New Economic Theories," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 11(3), pages 365-381, April.
    4. Petrakis, Emmanuel & Xepapadeas, Anastasios, 2003. "Location decisions of a polluting firm and the time consistency of environmental policy," Resource and Energy Economics, Elsevier, vol. 25(2), pages 197-214, May.
    5. Francesco Prota & Francesco Contò, 2004. "Location decision of polluting firms and environmental policy," ERSA conference papers ersa04p413, European Regional Science Association.
    6. Anastasios Xepapadeas, 2001. "Environmental Policy and Firm Behavior: Abatement Investment and Location Decisions under Uncertainty and Irreversibility," NBER Chapters, in: Behavioral and Distributional Effects of Environmental Policy, pages 281-308, National Bureau of Economic Research, Inc.

    More about this item

    Keywords

    ENVIRONMENTAL ECONOMICS ; RESEARCH AND DEVELOPMENT ; LOCATION OF INDUSTRY ; LICENCES;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy

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