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Enforcement of Intellectual Property, Pollution Abatement, and Directed Technical Change

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  • Andreas Schaefer

    (CER-ETH, Center of Economic Research at ETH Zurich)

Abstract

We theoretically investigate the interaction between endogenous enforcement of intellectual property rights (IPRs) and tax-financed pollution abatement measures. IPRs affect dirty and clean intermediates alike such that higher IPR enforcement may promote the transition to the clean technology, if this technology is productive enough. If the green technology is relatively unproductive, higher IPRs promote the dirty technology while pollution is increasing. As households are due to subsistence consumption subject to a hierarchy of needs, the level of IPR enforcement as well as the level of abatement measures depends on the state of technology and is increasing during economic development. Thus, if the incentive to enforce IPRs is low the level of abatement measures is also low. This argument provides a theoretical foundation for the observed clash of interests in international negotiation rounds regarding the harmonization of IPR protection and actions to combat climate change.

Suggested Citation

  • Andreas Schaefer, 2017. "Enforcement of Intellectual Property, Pollution Abatement, and Directed Technical Change," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 66(3), pages 457-480, March.
    • Handle: RePEc:kap:enreec:v:66:y:2017:i:3:d:10.1007_s10640-016-0088-1
    DOI: 10.1007/s10640-016-0088-1
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    More about this item

    Keywords

    Directed technical change; Intellectual property rights; Pollution;
    All these keywords.

    JEL classification:

    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • O34 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Intellectual Property and Intellectual Capital
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • 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
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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