Green Technology, Research Joint Ventures and Emissions Taxation?
AbstractThis paper performs a comparison of two well known approaches for modelling R&D spillovers associated with investment in green technology, namely D?Aspremont-Jacquemin and Kamien-Muller-Zang. We show that there is little qualitative difference between the models in terms of total surplus delivered when selecting the optimal tax regime when there is pre-commitment under cooperative R&D regimes. However, under non-cooperative regimes there is marked difference, with the model of Kamien-Muller-Zang leading to higher taxation rates when firms share information. Furthermore, we argue that the Kamien-Muller-Zang model is of questionable validity when modelling R&D on emissions reducing technology due to counter intuitive results showing a positive relationship between R&D spillovers and emissions taxes.
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Bibliographic InfoPaper provided by School of Economics, La Trobe University in its series Working Papers with number 2012.06.
Length: 33 pages
Date of creation: 2012
Date of revision:
Green Technology; Research Joint Ventures; Optimal Emissions Taxation;
Find related papers by JEL classification:
- H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
- L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
- Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation
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- Joanna Poyago-Thotoky, 2003.
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