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What is the socially desirable formation of environmental R&D?

Author

Listed:
  • Yasunori Ouchida

    (Faculty of Economics, Hiroshima University)

  • Daisaku Goto

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

Abstract

This paper presents an examination of the socially desirable formation of environmental R&D in Cournot duopoly in a setting where a regulator has no precommitment ability for an emissions tax. The results reveal that if environmental damage is sufficiently small, alternatively if there is severe environmental damage and large inefficiency in environmental R&D costs, then environmental research joint venture (ERJV) carteliza- tion is socially desirable. However, if environmental damage is sufficiently extensive, and if a firm’s environmental R&D costs are sufficiently limited, then, in contrast to previous studies, environmental R&D competition is socially more desirable than environmental R&D cartelization and ERJV cartelization, although R&D competition is the case of “NO information sharing” and “NO R&D coordination.”

Suggested Citation

  • 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).
  • Handle: RePEc:hir:idecdp:2-6
    as

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    File URL: http://ir.lib.hiroshima-u.ac.jp/files/public/32090/20141016185217997805/IDEC-DP2_02-6.pdf
    File Function: First version, 2012
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    References listed on IDEAS

    as
    1. Yasunori Ouchida & Daisaku Goto, 2011. "A Note on Environmental R&D under Time-Consistent Emission Tax," International Journal of Business and Economics, College of Business and College of Finance, Feng Chia University, Taichung, Taiwan, vol. 10(3), pages 257-260, December.
    2. Motta,Massimo, 2004. "Competition Policy," Cambridge Books, Cambridge University Press, number 9780521016919.
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    4. Gamal Atallah, 2007. "Research Joint Ventures with Asymmetric Spillovers and Symmetric Contributions," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 16(7), pages 559-586.
    5. repec:ebl:ecbull:v:12:y:2005:i:18:p:1-11 is not listed on IDEAS
    6. Toshimitsu, Tsuyoshi, 2003. "Optimal R&D policy and endogenous quality choice," International Journal of Industrial Organization, Elsevier, vol. 21(8), pages 1159-1178, October.
    7. Belleflamme,Paul & Peitz,Martin, 2010. "Industrial Organization," Cambridge Books, Cambridge University Press, number 9780521681599, November.
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    12. Scott, Susan, 1997. "The Environment," Book Chapters,in: Honohan, Patrick (ed.), EU Structural Funds in Ireland: A Mid-Term Evaluation of the CSF 1994-99 Economic and Social Research Institute (ESRI).
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    18. Jeroen Hinloopen, 2000. "More on subsidizing cooperative and noncooperative R&D in duopoly with spillovers," Journal of Economics, Springer, vol. 72(3), pages 295-308, October.
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    Citations

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    Cited by:

    1. 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.

    More about this item

    Keywords

    Environmental research joint venture; Environmental R&D; Time-consistent emission tax; Competition policy; Cournot duopoly;

    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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