Incentives for Green R&D in a Dirty Industry under Price Competition
In an oligopolistic framework with price competition, we examine the effect of abatement taxes, as well as emission caps on the incentives for adopting a green technology. We identify two new strategic effects, namely the relative efficiency effect, and the competition softening effect, that affect the incentive for green R&D. Under an abatement tax, R&D incentives increase whenever the new technology is non-drastic, and the demand function is either approximately linear, or not too elastic. Another sufficient condition is that the market size be sufficiently large. With emission caps, the result depends on how green the new technology is.
Volume (Year): 29 (2009)
Issue (Month): 3 ()
|Contact details of provider:|| |
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.:
- Xepapadeas, Anastasios & de Zeeuw, Aart, 1999.
"Environmental Policy and Competitiveness: The Porter Hypothesis and the Composition of Capital,"
Journal of Environmental Economics and Management,
Elsevier, vol. 37(2), pages 165-182, March.
- Xepapadeas, A. & de Zeeuw, A.J., 1998. "Environmental Policy and Competitiveness : The Porter Hypothesis and the Composition of Capital," Discussion Paper 1998-38, Tilburg University, Center for Economic Research.
- Xepapadeas, A. & de Zeeuw, A.J., 1999. "Environmental policy and competitiveness : The Porter hypothesis and the composition of capital," Other publications TiSEM cfb3ecf9-1a3c-4325-ac1d-b, Tilburg University, School of Economics and Management.
- Mohr, Robert D., 2002. "Technical Change, External Economies, and the Porter Hypothesis," Journal of Environmental Economics and Management, Elsevier, vol. 43(1), pages 158-168, January.
- Karen Palmer & Wallace E. Oates & Paul R. Portney, 1995. "Tightening Environmental Standards: The Benefit-Cost or the No-Cost Paradigm?," Journal of Economic Perspectives, American Economic Association, vol. 9(4), pages 119-132, Fall.
- Indrani, Roy Chowdhury, 2006. "Re-visiting the Porter Hypothesis," MPRA Paper 7899, University Library of Munich, Germany.
- Tasnadi, Attila, 1999. "Existence of pure strategy Nash equilibrium in Bertrand-Edgeworth oligopolies," Economics Letters, Elsevier, vol. 63(2), pages 201-206, May.
- Simpson, R. David & Bradford, Robert III, 1996. "Taxing Variable Cost: Environmental Regulation as Industrial Policy," Journal of Environmental Economics and Management, Elsevier, vol. 30(3), pages 282-300, May. Full references (including those not matched with items on IDEAS)