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

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Author Info

  • 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.

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Bibliographic Info

Paper provided by Universite Aix-Marseille III in its series G.R.E.Q.A.M. with number 98a43.

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Length: 16 pages
Date of creation: 1998
Date of revision:
Handle: RePEc:fth:aixmeq:98a43

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Postal: G.R.E.Q.A.M., (GROUPE DE RECHERCHE EN ECONOMIE QUANTITATIVE D'AIX MARSEILLE), CENTRE DE VIEILLE CHARITE, 2 RUE DE LA CHARITE, 13002 MARSEILLE.
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Related research

Keywords: ENVIRONMENTAL ECONOMICS ; RESEARCH AND DEVELOPMENT ; LOCATION OF INDUSTRY ; LICENCES;

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Cited by:
  1. 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.
  2. Hartl, R.F. & Kort, P.M., 1995. "Capital accumulation of a firm facing an emissions tax," Discussion Paper 1995-78, Tilburg University, Center for Economic Research.
  3. Carlo Carraro, 1998. "New Economic Theories," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 11(3), pages 365-381, April.
  4. 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.
  5. Francesco Prota & Francesco Contò, 2004. "Location decision of polluting firms and environmental policy," ERSA conference papers ersa04p413, European Regional Science Association.

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