IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this article or follow this journal

Transboundary Pollution, R&D Spillovers, Absorptive Capacity and International Trade

  • Zaineb Dinar

    (University of Tunis el Manar, FSEGT and LAREQUAD Campus Universitaire, El Manar II, Tunis 2092, Tunisia)

Registered author(s):

    In this paper, we study the effects of absorptive capacity and R&D spillovers on cross -border pollution in a game played by two regulator-firm hierarchies. By means of a tax per-unit of pollution, a subsidy per- unit of original research and a subsidy per-unit of absorptive research, the regulators can reach the first -best outcome. We show that, in addition to free R&D spillovers and absorptive research, competition of firms on the common market help non -cooperating countries to better internalize transboundary pollution. More importantly, opening borders increase the per -unitemission- tax and decrease the per-unit original research subsidy. Thus, when the investment-costparameters are sufficiently high, the international trade increases the original research, production.Consequently, the emission ratio is lower.

    If you experience problems downloading a file, check if you have the proper application to view it first. 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.econjournals.com/index.php/ijefi/article/download/813/pdf
    Download Restriction: no

    File URL: http://www.econjournals.com/index.php/ijefi/article/view/813/pdf
    Download Restriction: no

    Article provided by Econjournals in its journal International Journal of Economics and Financial Issues.

    Volume (Year): 4 (2014)
    Issue (Month): 3 ()
    Pages: 501-513

    as
    in new window

    Handle: RePEc:eco:journ1:2014-03-6
    Contact details of provider: Web page: http://www.econjournals.com

    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.:

    as in new window
    1. d'Aspremont, Claude & Jacquemin, Alexis, 1988. "Cooperative and Noncooperative R&D in Duopoly with Spillovers," American Economic Review, American Economic Association, vol. 78(5), pages 1133-37, December.
    2. Chrysovalantou Milliou, 2009. "Endogenous protection of R&D investments," Canadian Journal of Economics, Canadian Economics Association, vol. 42(1), pages 184-205, February.
    3. Ben Youssef, Slim & Zaccour, Georges, 2014. "Absorptive Capacity, R&D Spillovers, Emissions Taxes and R&D Subsidies," Strategic Behavior and the Environment, now publishers, vol. 4(1), pages 41-58, April.
    4. Barbara J. Spencer & James A. Brander, 1983. "International R&D Rivalry and Industrial Strategy," NBER Working Papers 1192, National Bureau of Economic Research, Inc.
    5. Slim Ben Youssef, 2009. "Transboundary pollution, R&D spillovers and international trade," The Annals of Regional Science, Springer, vol. 43(1), pages 235-250, March.
    6. Copeland, Brian R & Taylor, M Scott, 1995. "Trade and Transboundary Pollution," American Economic Review, American Economic Association, vol. 85(4), pages 716-37, September.
    7. Yasuhiro Takarada, 2005. "Transboundary Pollution and the Welfare Effects of Technology Transfer," Journal of Economics, Springer, vol. 85(3), pages 251-275, 09.
    8. Werner Antweiler & Brian R. Copeland & M. Scott Taylor, 1998. "Is Free Trade Good for the Environment?," NBER Working Papers 6707, National Bureau of Economic Research, Inc.
    9. Dermot Leahy & J Peter Neary, 2004. "Absorptive Capacity, R&D Spillovers, and Public Policy," Working Papers 200418, School Of Economics, University College Dublin.
    10. d'Aspremont, Claude & Jacquemin, Alexis, 1990. "Cooperative and Noncooperative R&D in Duopoly with Spillovers: Erratum," American Economic Review, American Economic Association, vol. 80(3), pages 641-42, June.
    11. Bjorvatn, K. & Schjelderup, G., 2000. "Tax Competition and International Public Goods," Papers 15/00, Norwegian School of Economics and Business Administration-.
    12. Isabelle PÈchoux & JÈr�me Pouyet, 2003. "Regulated Firms with Transboundary Pollution: Does International Competition Improve Efficiency?," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 5(3), pages 499-525, 07.
    13. Ben Youssef, Slim, 2009. "Transboundary Pollution and Absorptive Capacity," MPRA Paper 17158, University Library of Munich, Germany.
    14. 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.
    15. Cohen, Wesley M & Levinthal, Daniel A, 1989. "Innovation and Learning: The Two Faces of R&D," Economic Journal, Royal Economic Society, vol. 99(397), pages 569-96, September.
    16. Pei-Cheng Liao, 2007. "International R&D Rivalry with Spillovers and Policy Cooperation in R&D Subsidies and Taxes," International Economic Journal, Taylor & Francis Journals, vol. 21(3), pages 399-417.
    17. Kamien, Morton I. & Zang, Israel, 2000. "Meet me halfway: research joint ventures and absorptive capacity," International Journal of Industrial Organization, Elsevier, vol. 18(7), pages 995-1012, October.
    Full references (including those not matched with items on IDEAS)

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:eco:journ1:2014-03-6. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ilhan Ozturk)

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.