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Environmental regulation, technological diversity, and the dynamics of technological change

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  • Krysiak, Frank C.

Abstract

Inducing technological progress is an important objective of environmental regulation. We investigate under which conditions regulation-induced technological progress pursues the best technological option. We analyze a setting with vertical and horizontal technological progress, cost uncertainty, time-limited patent protection, and a case that is typical for some emissi4on-intensive industries, like electricity generation or the chemical industry. Under taxes and standards, only the current least-cost technology is used and developed, implying a lock-in into a possibly inferior technology. Tradable permits yield slower progress but can facilitate the simultaneous development of technologies, rendering lock-ins less likely.

Suggested Citation

  • Krysiak, Frank C., 2011. "Environmental regulation, technological diversity, and the dynamics of technological change," Journal of Economic Dynamics and Control, Elsevier, vol. 35(4), pages 528-544, April.
  • Handle: RePEc:eee:dyncon:v:35:y:2011:i:4:p:528-544
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    Cited by:

    1. Bondarev, Anton & Greiner, Alfred, 2017. "Catching-up and falling behind: Effects of learning in an R&D differential game with spillovers," Working papers 2017/02, Faculty of Business and Economics - University of Basel.
    2. Oikawa, Koki & Managi, Shunsuke, 2015. "R&D in clean technology: A project choice model with learning," Journal of Economic Behavior & Organization, Elsevier, vol. 117(C), pages 175-195.
    3. Gerlagh, Reyer & Kverndokk, Snorre & Rosendahl, Knut Einar, 2014. "The optimal time path of clean energy R&D policy when patents have finite lifetime," Journal of Environmental Economics and Management, Elsevier, vol. 67(1), pages 2-19.
    4. Bondarev, Anton, 2018. "Robust policy schemes for R&D games with asymmetric information," Working papers 2018/01, Faculty of Business and Economics - University of Basel.
    5. repec:eee:dyncon:v:91:y:2018:i:c:p:134-156 is not listed on IDEAS
    6. Bondarev, Anton & Krysiak, Frank C., 2017. "Temporary and permanent technology lock-ins in the quality-differentiated Bertrand competition," Working papers 2017/09, Faculty of Business and Economics - University of Basel.
    7. Raouf Boucekkine & Natali Hritonenko & Yuri Yatsenko, 2011. "Sustainable growth under pollution quotas: optimal R&D, investment and replacement policies," Working Papers halshs-00632887, HAL.
    8. Federico Boffa, Stefano Clò, and Alessio D'Amato, 2016. "Investment in Renewables under Uncertainty: Fitting a Feed-in Scheme into ETS," The Energy Journal, International Association for Energy Economics, vol. 0(Bollino-M).
    9. Anton Bondarev & Frank C. Krysiak, 2017. "Robust policy schemes for R&D games with asymmetric information," Working papers 2017/14, Faculty of Business and Economics - University of Basel.

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