This file is part of IDEAS, which uses RePEc data


[ Papers | Articles | Software | Books | Chapters | Authors | Institutions | JEL Classification | NEP reports | Search | New papers by email | Author registration | Rankings | Volunteers | FAQ | Blog | Help! ]

Linking Environmental and Innovation Policy

Author info | Abstract | Publisher info | Download info | Related research | Statistics
Author Info
Gerlagh , Reyer (University of Manchester)
Kverndokk, Snorre (Ragnar Frisch Centre for Economic Research)
Rosendahl, Knut Einar (Research Department, Statistics Norway)

Additional information is available for the following registered author(s):

Abstract

This paper addresses the timing and interdependence between innovation and environmental policy in a model of research and development (R&D). On a first-best path the environmental tax is set at the Pigouvian level, independent of innovation policy. With infinite patent lifetime, the R&D subsidy should be constant and independent of the state of the environment. However, with finite patent lifetime, optimal innovation policy depends on the stage of the environmental problem. In the early stages of an environmental problem, abatement research should be subsidized at a high level and this subsidy should fall monotonically over time to stimulate initial R&D investments. Alternatively, with a constant R&D subsidy, patents’ length should initially have a very long life-time but this should be gradually shortened. In a second-best situation with no deployment subsidy for abatement equipment, we find that the environmental tax should be high compared to the Pigouvian levels when an abatement industry is developing, but the relative difference falls over time. That is, environmental policies will be accelerated compared to first-best.

Download Info
To download:

If you experience problems downloading a file, check if you have the proper application to view it first. Information about this may be contained in the File-Format links below. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://www.oekonomi.uio.no/memo/2008/pdf_filer/Memo-10-2008.pdf
File Format: application/pdf
File Function:
Download Restriction: no

Publisher Info
Paper provided by Oslo University, Department of Economics in its series Memorandum with number 10/2008.

Download reference. The following formats are available: HTML (with abstract), plain text (with abstract), BibTeX, RIS (EndNote, RefMan, ProCite), ReDIF
Length: 27 pages
Date of creation: 10 Jun 2008
Date of revision:
Handle: RePEc:hhs:osloec:2008_010

Contact details of provider:
Postal: Department of Economics, University of Oslo, P.O Box 1095 Blindern, N-0317 Oslo, Norway
Phone: 22 85 51 27
Fax: 22 85 50 35
Email:
Web page: http://www.oekonomi.uio.no/indexe.html
More information through EDIRC

For technical questions regarding this item, or to correct its listing, contact: (Rhiana Bergh-Seeley).

Related research
Keywords: Environmental policy; research and development; innovation studies; patents;

Other versions of this item:

Find related papers by JEL classification:
H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation
O30 - Economic Development, Technological Change, and Growth - - Technological Change - - - General
Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources

This paper has been announced in the following NEP Reports:

References listed on IDEAS
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. Jaffe, Adam B. & Newell, Richard G. & Stavins, Robert N., 2005. "A tale of two market failures: Technology and environmental policy," Ecological Economics, Elsevier, vol. 54(2-3), pages 164-174, August. [Downloadable!] (restricted)
    Other versions:
  2. Bramoulle, Yann & Olson, Lars J., 2005. "Allocation of pollution abatement under learning by doing," Journal of Public Economics, Elsevier, vol. 89(9-10), pages 1935-1960, September. [Downloadable!] (restricted)
  3. Paul Romer, 1991. "Endogenous Technological Change," NBER Working Papers 3210, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  4. Stephen M. Maurer & Suzanne Scotchmer, 2004. "Profit Neutrality in Licensing: The Boundary between Antitrust Law and Patent Law," NBER Working Papers 10546, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  5. Reyer Gerlagh, Snorre Kverndokk and Knut Einar Rosendahl, 2007. "Optimal Timing of Environmental Policy. Interaction between Environmental Taxes and Innovation Externalities," Discussion Papers 493, Research Department of Statistics Norway. [Downloadable!]
    Other versions:
  6. Kverndokk, Snorre & Rosendahl, Knut Einar, 2007. "Climate policies and learning by doing: Impacts and timing of technology subsidies," Resource and Energy Economics, Elsevier, vol. 29(1), pages 58-82, January. [Downloadable!] (restricted)
  7. Smulders, S. & Bretschger, L., 2000. "Explaining environmental kuznets curves : how pollution induces policy and new technology," Discussion Paper 95, Tilburg University, Center for Economic Research. [Downloadable!]
  8. Judd, Kenneth L, 1985. "On the Performance of Patents," Econometrica, Econometric Society, vol. 53(3), pages 567-85, May. [Downloadable!] (restricted)
  9. Chien-fu Chou & Oz Shy, 1993. "The Crowding-Out Effects of Long Duration of Patents," RAND Journal of Economics, The RAND Corporation, vol. 24(2), pages 304-312, Summer. [Downloadable!] (restricted)
  10. Scotchmer, Suzanne, 1991. "Standing on the Shoulders of Giants: Cumulative Research and the Patent Law," Journal of Economic Perspectives, American Economic Association, vol. 5(1), pages 29-41, Winter. [Downloadable!] (restricted)
Full references

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. GRIMAUD Andre & LAFFORGUE Gilles & MAGNE Bertrand, 2009. "Climate change mitigation options and directed technical change: A decentralized equilibrium analysis," Working Papers 09.20.296, LERNA, University of Toulouse. [Downloadable!]
  2. Tom-Reiel Heggedal and Karl Jacobsen, 2008. "Timing of innovation policies when carbon emissions are restricted: an applied general equilibrium analysis," Discussion Papers 536, Research Department of Statistics Norway. [Downloadable!]
  3. Brita Bye and Karl Jacobsen, 2009. "On general versus emission saving R&D support," Discussion Papers 584, Research Department of Statistics Norway. [Downloadable!]
  4. Reyer Gerlagh & Snorre Kverndokk & Knut Rosendahl, 2009. "Optimal Timing of Climate Change Policy: Interaction Between Carbon Taxes and Innovation Externalities," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 43(3), pages 369-390, July. [Downloadable!] (restricted)
Statistics
Access and download statistics

Did you know? There are over 21000 authors registered on RePEc Author Service.

This page was last updated on 2009-11-26.

This information is provided to you by IDEAS at the Department of Economics, College of Liberal Arts and Sciences, University of Connecticut using RePEc data on a server sponsored by the Society for Economic Dynamics.