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A note on environmental R&D under time-consistent emission tax

Author

Listed:
  • Yasunori Ouchida

    (Faculty of Economics, Hiroshima University)

  • Daisaku Goto

    (Graduate School for International Development and Cooperation, Hiroshima University)

Abstract

In a recent publication in Journal of Economic Behavior and Organization, Poyago-Theotoky (2007) developed a three-stage game model, and also derived theoretical findings and important policy implications for environmental R&D under a time-consistent emission tax. Among the conclusions presented in that paper, it was stated that with inefficient environmental R&D technology and small environmental damage, cooperative environmental R&D engenders larger environmental R&D efforts and greater social welfare than noncooperative environmental R&D does. This note describes that the results of Professor Poyago-Theotoky's (2007, 2010) works are still robust in a relaxed wider parameter range of the environmental damage coefficient. Furthermore, we provide the generalized sufficient condition of damage coefficient to guarantee an interior solution for R&D in an extended framework.

Suggested Citation

  • Yasunori Ouchida & Daisaku Goto, 2011. "A note on environmental R&D under time-consistent emission tax," IDEC DP2 Series 1-6, Hiroshima University, Graduate School for International Development and Cooperation (IDEC).
  • Handle: RePEc:hir:idecdp:1-6
    as

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    File URL: http://ir.lib.hiroshima-u.ac.jp/files/public/31847/20141016183535569861/IDEC-DP2_01-6.pdf
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    References listed on IDEAS

    as
    1. Avinash Dixit, 1979. "A Model of Duopoly Suggesting a Theory of Entry Barriers," Bell Journal of Economics, The RAND Corporation, vol. 10(1), pages 20-32, Spring.
    2. Poyago-Theotoky, J.A., 2007. "The organization of R&D and environmental policy," Journal of Economic Behavior & Organization, Elsevier, vol. 62(1), pages 63-75, January.
    3. Poyago-Theotoky, J.A., 2010. "Corrigendum to "The Organization of R&D and Environmental Policy" [J. Econ. Behav. Org. 62 (2007) 63-75]," Journal of Economic Behavior & Organization, Elsevier, vol. 76(2), pages 449-449, November.
    4. Spence, Michael, 1976. "Product Differentiation and Welfare," American Economic Review, American Economic Association, vol. 66(2), pages 407-414, May.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Ouchida, Yasunori & Goto, Daisaku, 2016. "Environmental research joint ventures and time-consistent emission tax: Endogenous choice of R&D formation," Economic Modelling, Elsevier, vol. 55(C), pages 179-188.
    2. Yasunori Ouchida & Daisaku Goto, 2012. "The organization of R&D and environmental policy: So does emission subsidy reduce emissions?," IDEC DP2 Series 2-13, Hiroshima University, Graduate School for International Development and Cooperation (IDEC).
    3. Yasunori Ouchida & Daisaku Goto, 2012. "What is the socially desirable formation of environmental R&D?," IDEC DP2 Series 2-6, Hiroshima University, Graduate School for International Development and Cooperation (IDEC).
    4. Yasunori Ouchida & Daisaku Goto, 2014. "Environmental Research Joint Ventures and Time-Consistent Emission Tax," Working Papers 2014.35, Fondazione Eni Enrico Mattei.
    5. Ouchida, Yasunori & Goto, Daisaku, 2014. "Do emission subsidies reduce emission? In the context of environmental R&D organization," Economic Modelling, Elsevier, vol. 36(C), pages 511-516.

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    More about this item

    Keywords

    Time-consistent emission tax; Environmental R&D; environmental damage; Cournot duopoly;
    All these keywords.

    JEL classification:

    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • 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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