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Carbon Tax in a Triopoly with Environmental R&D and Knowledge Spillovers

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  • Chenyu Wang

    (Hunan Institute of Science and Technology, School of Economics and Management)

  • Gamal Atallah

    (University of Ottawa, Department of Economics)

Abstract

In a three-stage game-theoretic framework, we build a triopoly model characterized by environmental research and development (R&D) and knowledge spillovers. This study analyzes the effects and implications of environmental technology policies on a polluting triopoly with environmental R&D and knowledge spillovers. In particular, we (i) compare the economic–environmental performance of regimes of R&D competition, R&D partial cartelization, and R&D full cartelization under non-commitment and commitment scenarios; (ii) examine stability conditions between insiders and an outsider in R&D partial cartelization under non-commitment and commitment scenarios; and (iii) investigate the full rank of the firm- and industrial-level variables under different cases. This study provides practical insights into the optimal design of environmental technology policies for government, enterprises, and consumers under a unified analysis framework.

Suggested Citation

  • Chenyu Wang & Gamal Atallah, 2025. "Carbon Tax in a Triopoly with Environmental R&D and Knowledge Spillovers," Journal of Quantitative Economics, Springer;The Indian Econometric Society (TIES), vol. 23(4), pages 1117-1144, December.
  • Handle: RePEc:spr:jqecon:v:23:y:2025:i:4:d:10.1007_s40953-025-00467-5
    DOI: 10.1007/s40953-025-00467-5
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    JEL classification:

    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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