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Cournot competition and “green” innovation: An inverted-U relationship

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  • Lambertini, Luca
  • Poyago-Theotoky, Joanna
  • Tampieri, Alessandro

Abstract

We examine the relationship between competition and innovation in an industry where production is polluting and R&D has the aim to reduce emissions (“green” innovation). We present an n-firm oligopoly where firms compete in quantities and decide their investment in “green” R&D. We analyse the case where the emission tax is set endogenously by a committed regulator and uncover an inverted-U relationship between innovation and competition that is mainly driven by the presence of R&D spillovers.

Suggested Citation

  • Lambertini, Luca & Poyago-Theotoky, Joanna & Tampieri, Alessandro, 2017. "Cournot competition and “green” innovation: An inverted-U relationship," Energy Economics, Elsevier, vol. 68(C), pages 116-123.
  • Handle: RePEc:eee:eneeco:v:68:y:2017:i:c:p:116-123
    DOI: 10.1016/j.eneco.2017.09.022
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    Cited by:

    1. Lambertini, Luca & Poyago-Theotoky, Joanna & Tampieri, Alessandro, 2017. "Cournot competition and “green” innovation: An inverted-U relationship," Energy Economics, Elsevier, vol. 68(C), pages 116-123.
    2. repec:gam:jeners:v:10:y:2017:i:12:p:2026-:d:121239 is not listed on IDEAS
    3. Christian Beyer & Elke Kottmann & Korbinian von Blanckenburg, 2018. "Trucks, Triangles and a Quiet Life: Welfare Implications of the European Trucks Cartel," MAGKS Papers on Economics 201818, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).

    More about this item

    Keywords

    “Green” R&D; R&D spillovers; Emission taxation; Precommitted regulator; Cournot oligopoly;

    JEL classification:

    • Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets

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