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What is the socially desirable formation of environmental R&D?

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Author Info

  • Yasunori Ouchida

    (Faculty of Economics, Hiroshima University)

  • Daisaku Goto

    (Graduate School for International Development and Cooperation, Hiroshima University)

Abstract

This paper presents an examination of the socially desirable formation of environmental R&D in Cournot duopoly in a setting where a regulator has no precommitment ability for an emissions tax. The results reveal that if environmental damage is sufficiently small, alternatively if there is severe environmental damage and large inefficiency in environmental R&D costs, then environmental research joint venture (ERJV) carteliza- tion is socially desirable. However, if environmental damage is sufficiently extensive, and if a firm’s environmental R&D costs are sufficiently limited, then, in contrast to previous studies, environmental R&D competition is socially more desirable than environmental R&D cartelization and ERJV cartelization, although R&D competition is the case of “NO information sharing” and “NO R&D coordination.”

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File URL: http://ir.lib.hiroshima-u.ac.jp/metadb/up/ZZT00001/IDEC-DP2_02-6.pdf
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Bibliographic Info

Paper provided by Hiroshima University, Graduate School for International Development and Cooperation (IDEC) in its series IDEC DP2 Series with number 2-6.

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Length: 19 pages
Date of creation: Feb 2012
Date of revision:
Handle: RePEc:hir:idecdp:2-6

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Web page: http://www.hiroshima-u.ac.jp/en/idec/
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Related research

Keywords: Environmental research joint venture; Environmental R&D; Time-consistent emission tax; Competition policy; Cournot duopoly;

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References

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  1. Jiunn-Rong Chiou & Jin-Li Hu, 2001. "Environmental Research Joint Ventures under Emission Taxes," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 20(2), pages 129-146, October.
  2. Poyago-Theotoky, J.A., 2010. "Corrigendum to "The Organization of R&D and Environmental Policy" [J. Econ. Behav. Org. 62 (2007) 63-75]," Journal of Economic Behavior & Organization, Elsevier, vol. 76(2), pages 449-449, November.
  3. Gamal Atallah, 2007. "Research Joint Ventures with Asymmetric Spillovers and Symmetric Contributions," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 16(7), pages 559-586.
  4. Yakita, Akira & Yamauchi, Hisayuki, 2011. "Environmental awareness and environmental R&D spillovers in differentiated duopoly," Research in Economics, Elsevier, vol. 65(3), pages 137-143, September.
  5. Requate, Till, 2005. "Dynamic incentives by environmental policy instruments--a survey," Ecological Economics, Elsevier, vol. 54(2-3), pages 175-195, August.
  6. Kamien, Morton I & Muller, Eitan & Zang, Israel, 1992. "Research Joint Ventures and R&D Cartels," American Economic Review, American Economic Association, vol. 82(5), pages 1293-306, December.
  7. Scott, John T., 2005. "Corporate social responsibility and environmental research and development," Structural Change and Economic Dynamics, Elsevier, vol. 16(3), pages 313-331, September.
  8. Motta,Massimo, 2004. "Competition Policy," Cambridge Books, Cambridge University Press, number 9780521016919, April.
  9. Puller, Steven L., 2006. "The strategic use of innovation to influence regulatory standards," Journal of Environmental Economics and Management, Elsevier, vol. 52(3), pages 690-706, November.
  10. Toshimitsu, Tsuyoshi, 2003. "Optimal R&D policy and endogenous quality choice," International Journal of Industrial Organization, Elsevier, vol. 21(8), pages 1159-1178, October.
  11. Jeroen Hinloopen, 2000. "More on subsidizing cooperative and noncooperative R&D in duopoly with spillovers," Journal of Economics, Springer, vol. 72(3), pages 295-308, October.
  12. Gamal Atallah, 2005. "R&D cooperation with asymmetric spillovers," Canadian Journal of Economics, Canadian Economics Association, vol. 38(3), pages 919-936, August.
  13. Suetens, Sigrid, 2008. "Does R&D cooperation facilitate price collusion? An experiment," Journal of Economic Behavior & Organization, Elsevier, vol. 66(3-4), pages 822-836, June.
  14. Yannis Caloghirou & Stavros Ioannides & Nicholas S. Vonortas, 2003. "Research Joint Ventures," Journal of Economic Surveys, Wiley Blackwell, vol. 17(4), pages 541-570, 09.
  15. Adam Jaffe & Richard Newell & Robert Stavins, 2002. "Environmental Policy and Technological Change," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 22(1), pages 41-70, June.
  16. Jeroen Hinloopen, 1997. "Subsidizing cooperative and noncooperative R&D in duopoly with spillovers," Journal of Economics, Springer, vol. 66(2), pages 151-175, June.
  17. Gamal Atallah, 2005. "Research Joint Ventures Cartelization with Asymmetric R&D Spillovers," Economics Bulletin, AccessEcon, vol. 12(18), pages 1-11.
  18. Poyago-Theotoky, J.A., 2007. "The organization of R&D and environmental policy," Journal of Economic Behavior & Organization, Elsevier, vol. 62(1), pages 63-75, January.
  19. Grossman, Gene M & Shapiro, Carl, 1986. "Research Joint Ventures: An Antitrust Analysis," Journal of Law, Economics and Organization, Oxford University Press, vol. 2(2), pages 315-37, Fall.
  20. Cameron Hepburn, 2006. "Regulation by Prices, Quantities, or Both: A Review of Instrument Choice," Oxford Review of Economic Policy, Oxford University Press, vol. 22(2), pages 226-247, Summer.
  21. Yasunori Ouchida & Daisaku Goto, 2011. "A Note on Environmental R&D under Time-Consistent Emission Tax," International Journal of Business and Economics, College of Business, and College of Finance, Feng Chia University, Taichung, Taiwan, vol. 10(3), pages 257-260, December.
  22. repec:ebl:ecbull:v:12:y:2005:i:18:p:1-11 is not listed on IDEAS
  23. Poyago-Theotoky, Joanna & Teerasuwannajak, Khemarat, 2002. "The Timing of Environmental Policy: A Note on the Role of Product Differentiation," Journal of Regulatory Economics, Springer, vol. 21(3), pages 305-16, May.
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