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Commitment and Timing of Environmental Policy, Adoption of New Technology and Repercussions on R&D

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  • Requate, Till

Abstract

We investigate the interplay between environmental policy, incentives to adopt new technology, and repercussions on R&D. We study a model where a monopolistic upstream firm engages in R&D and sells advanced abatement technology to polluting downstream firms which are subject to regulation. We consider for different timing and commitment regimes of environmental tax and permit policies: ex post taxation (or issuing permits) ex interim commitment to a tax rate (a quota of permits) after observing R&D success but before adaption, and two types of ex ante commitment before R&D activity. We study the second best tax and permit rules and rank the policies with respect to welfare. --

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Bibliographic Info

Paper provided by Christian-Albrechts-University of Kiel, Department of Economics in its series Economics Working Papers with number 2003,07.

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Date of creation: 2003
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Handle: RePEc:zbw:cauewp:851

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Cited by:
  1. Dagmar Nelissen & Till Requate, 2007. "Pollution-reducing and resource-saving technological progress," International Journal of Agricultural Resources, Governance and Ecology, Inderscience Enterprises Ltd, Inderscience Enterprises Ltd, vol. 6(1), pages 5-44.
  2. Hattori, Keisuke, 2010. "Firm Incentives for Environmental R&D under Non-cooperative and Cooperative Policies," MPRA Paper 24754, University Library of Munich, Germany.
  3. Alfred Endres, 2008. "Ein Unmöglichkeitstheorem für die Klimapolitik?," Perspektiven der Wirtschaftspolitik, Verein für Socialpolitik, Verein für Socialpolitik, vol. 9(3), pages 350-382, 08.
  4. Grischa Perino, 2008. "The merits of new pollutants and how to get them when patents are granted," Environmental & Resource Economics, European Association of Environmental and Resource Economists, European Association of Environmental and Resource Economists, vol. 40(3), pages 313-327, July.
  5. Ralph Winkler, 2008. "Optimal compliance with emission constraints: dynamic characteristics and the choice of technique," Environmental & Resource Economics, European Association of Environmental and Resource Economists, European Association of Environmental and Resource Economists, vol. 39(4), pages 411-432, April.
  6. Bouwe R. Dijkstra & Anuj J. Mathew, 2009. "Liberalizing Trade in Environmental Goods," Faculty Working Papers, School of Economics and Business Administration, University of Navarra 16/09, School of Economics and Business Administration, University of Navarra.
  7. Alain-Désiré Nimubona & Bernard Sinclair-Desgagné, 2010. "Polluters and Abaters," Working Papers 1009, University of Waterloo, Department of Economics, revised Sep 2010.
  8. Grischa Perino, 2010. "Technology Diffusion with Market Power in the Upstream Industry," Environmental & Resource Economics, European Association of Environmental and Resource Economists, European Association of Environmental and Resource Economists, vol. 46(4), pages 403-428, August.

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