IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Log in (now much improved!) to save this article

Environmental liability law and R&D subsidies: results on the screening of firms and the use of uniform policy

Listed author(s):
  • Alfred Endres

    ()

  • Tim Friehe

    ()

  • Bianca Rundshagen

    ()

This paper analyzes both R&D in pollution control technology and pollution abatement by firms that are subject to environmental liability law (either strict liability or negligence) and are granted R&D subsidies. Firms differ in their R&D costs (private information) and experience technology spillovers. Policy makers may induce first-best abatement and R&D levels despite asymmetric information by graduating policy instruments to screen firms. The chances of implementing first-best activity levels by such means differ under strict liability and negligence, and examples suggest that negligence performs better. The paper also studies the case in which uniform policy levels are imposed on heterogeneous firms, showing that strict liability tends to outperform negligence from a social welfare perspective in this scenario. Copyright Society for Environmental Economics and Policy Studies and Springer Japan 2015

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://hdl.handle.net/10.1007/s10018-015-0103-8
Download Restriction: Access to full text is restricted to subscribers.

As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

Article provided by Springer & Society for Environmental Economics and Policy Studies - SEEPS in its journal Environmental Economics and Policy Studies.

Volume (Year): 17 (2015)
Issue (Month): 4 (October)
Pages: 521-541

as
in new window

Handle: RePEc:spr:envpol:v:17:y:2015:i:4:p:521-541
DOI: 10.1007/s10018-015-0103-8
Contact details of provider: Web page: http://www.springer.com

Web page: http://www.seeps.org/
Email:


More information through EDIRC

Order Information: Web: http://www.springer.com/economics/environmental/journal/10018

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. Miceli Thomas J., 2006. "On Negligence Rules and Self-Selection," Review of Law & Economics, De Gruyter, vol. 2(3), pages 349-361, October.
  2. Allan, Corey & Jaffe, Adam B. & Sin, Isabelle, 2014. "Diffusion of Green Technology: A Survey," International Review of Environmental and Resource Economics, now publishers, vol. 7(1), pages 1-33, April.
  3. Martin, Stephen & Scott, John T., 2000. "The nature of innovation market failure and the design of public support for private innovation," Research Policy, Elsevier, vol. 29(4-5), pages 437-447, April.
  4. Chang, Howard F. & Sigman, Hilary, 2007. "The effect of joint and several liability under superfund on brownfields," International Review of Law and Economics, Elsevier, vol. 27(4), pages 363-384, December.
  5. Parry, Ian W H, 1998. "Pollution Regulation and the Efficiency Gains from Technological Innovation," Journal of Regulatory Economics, Springer, vol. 14(3), pages 229-254, November.
  6. Lori Bennear & Robert Stavins, 2007. "Second-best theory and the use of multiple policy instruments," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 37(1), pages 111-129, May.
  7. Fischer, Carolyn & Parry, Ian W. H. & Pizer, William A., 2003. "Instrument choice for environmental protection when technological innovation is endogenous," Journal of Environmental Economics and Management, Elsevier, vol. 45(3), pages 523-545, May.
  8. Parry, Ian W.H., 2003. "On the implications of technological innovation for environmental policy," Environment and Development Economics, Cambridge University Press, vol. 8(01), pages 57-76, February.
  9. Pierre Bentata, 2014. "Liability as a complement to environmental regulation: an empirical study of the French legal system," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 16(3), pages 201-228, July.
  10. Bréchet, Thierry & Jouvet, Pierre-André, 2008. "Environmental innovation and the cost of pollution abatement revisited," Ecological Economics, Elsevier, vol. 65(2), pages 262-265, April.
  11. Fischer, Carolyn & Newell, Richard G., 2008. "Environmental and technology policies for climate mitigation," Journal of Environmental Economics and Management, Elsevier, vol. 55(2), pages 142-162, March.
  12. Alfred Endres & Bianca Rundshagen & Regina Bertram, 2008. "Environmental Liability Law and Induced Technical Change: The Role of Spillovers," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 164(2), pages 254-279, June.
  13. Julien Jacob, 2015. "Innovation in Risky Industries under Liability Law: The Case of Double-Impact Innovations," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 171(3), pages 385-404, September.
  14. Michael G. Faure, 2014. "The complementary roles of liability, regulation and insurance in safety management: theory and practice," Journal of Risk Research, Taylor & Francis Journals, vol. 17(6), pages 689-707, June.
  15. Calcott, Paul & Hutton, Stephen, 2006. "The choice of a liability regime when there is a regulatory gatekeeper," Journal of Environmental Economics and Management, Elsevier, vol. 51(2), pages 153-164, March.
  16. Burrows, Paul, 1999. "Combining regulation and legal liability for the control of external costs," International Review of Law and Economics, Elsevier, vol. 19(2), pages 227-244, June.
  17. Jaffe, Adam B. & Newell, Richard G. & Stavins, Robert N., 2005. "A tale of two market failures: Technology and environmental policy," Ecological Economics, Elsevier, vol. 54(2-3), pages 164-174, August.
  18. Friehe, Tim, 2009. "Screening accident victims," International Review of Law and Economics, Elsevier, vol. 29(3), pages 272-280, September.
  19. Alfred Endres & Tim Friehe, 2012. "Generalized Progress of Abatement Technology: Incentives Under Environmental Liability Law," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 53(1), pages 61-71, September.
  20. Alfred Endres & Regina Bertram & Bianca Rundshagen, 2007. "Environmental Liability Law and Induced Technical Change – The Role of Discounting," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 36(3), pages 341-366, March.
  21. Clarke, Leon & Weyant, John & Edmonds, Jae, 2008. "On the sources of technological change: What do the models assume," Energy Economics, Elsevier, vol. 30(2), pages 409-424, March.
  22. Cropper, Maureen L & Oates, Wallace E, 1992. "Environmental Economics: A Survey," Journal of Economic Literature, American Economic Association, vol. 30(2), pages 675-740, June.
  23. Alfred Endres & Tim Friehe, 2013. "Led on the Wrong Track? A Note on the Direction of Technical Change under Environmental Liability Law," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 15(3), pages 506-518, 06.
  24. Requate, Till & Unold, Wolfram, 2003. "Environmental policy incentives to adopt advanced abatement technology:: Will the true ranking please stand up?," European Economic Review, Elsevier, vol. 47(1), pages 125-146, February.
  25. Yoram Bauman & Myunghun Lee & Karl Seeley, 2008. "Does Technological Innovation Really Reduce Marginal Abatement Costs? Some Theory, Algebraic Evidence, and Policy Implications," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 40(4), pages 507-527, August.
  26. Requate, Till, 2005. "Dynamic incentives by environmental policy instruments--a survey," Ecological Economics, Elsevier, vol. 54(2-3), pages 175-195, August.
  27. Puller, Steven L., 2006. "The strategic use of innovation to influence regulatory standards," Journal of Environmental Economics and Management, Elsevier, vol. 52(3), pages 690-706, November.
  28. Baker, Erin & Clarke, Leon & Shittu, Ekundayo, 2008. "Technical change and the marginal cost of abatement," Energy Economics, Elsevier, vol. 30(6), pages 2799-2816, November.
  29. Rabah Amir & Marc Germain & Vincent Van Steenberghe, 2008. "On the Impact of Innovation on the Marginal Abatement Cost Curve," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 10(6), pages 985-1010, December.
  30. Alistair Ulph & David Ulph, 2007. "Climate change—environmental and technology policies in a strategic context," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 37(1), pages 159-180, May.
  31. Baker, Erin & Shittu, Ekundayo, 2008. "Uncertainty and endogenous technical change in climate policy models," Energy Economics, Elsevier, vol. 30(6), pages 2817-2828, November.
  32. Endres, Alfred & Bertram, Regina, 2006. "The development of care technology under liability law," International Review of Law and Economics, Elsevier, vol. 26(4), pages 503-518, December.
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:spr:envpol:v:17:y:2015:i:4:p:521-541. 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: (Sonal Shukla)

or (Rebekah McClure)

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.