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Green Technology, Research Joint Ventures and Emissions Taxation?

Author

Listed:
  • Joanna Poyago-Theotoky

    () (School of Economics, La Trobe University)

  • Stuart McDonald

    () (School of Economics, The University of Queensland)

Abstract

This paper performs a comparison of two well known approaches for modelling R&D spillovers associated with investment in green technology, namely D?Aspremont-Jacquemin and Kamien-Muller-Zang. We show that there is little qualitative difference between the models in terms of total surplus delivered when selecting the optimal tax regime when there is pre-commitment under cooperative R&D regimes. However, under non-cooperative regimes there is marked difference, with the model of Kamien-Muller-Zang leading to higher taxation rates when firms share information. Furthermore, we argue that the Kamien-Muller-Zang model is of questionable validity when modelling R&D on emissions reducing technology due to counter intuitive results showing a positive relationship between R&D spillovers and emissions taxes.

Suggested Citation

  • Joanna Poyago-Theotoky & Stuart McDonald, 2012. "Green Technology, Research Joint Ventures and Emissions Taxation?," Working Papers 2012.06, School of Economics, La Trobe University.
  • Handle: RePEc:trb:wpaper:2012.06
    Note: ISSN-1837-2198
    as

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    File URL: http://www.latrobe.edu.au/__data/assets/pdf_file/0014/211640/2012.06.pdf
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    File URL: http://www.latrobe.edu.au/__data/assets/pdf_file/0014/211640/2012.06.pdf
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    References listed on IDEAS

    as
    1. 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.
    2. Joanna Poyago-Thotoky, 2003. "Optimal Environmental Taxation, R&D Subsidization and the Role of Market Conduct," Finnish Economic Papers, Finnish Economic Association, vol. 16(1), pages 15-26, Spring.
    3. Petrakis, Emmanuel & Poyago-Theotoky, Joanna, 2002. "R&D Subsidies versus R&D Cooperation in a Duopoly with Spillovers and Pollution," Australian Economic Papers, Wiley Blackwell, vol. 41(1), pages 37-52, March.
    4. Jung, Chulho & Krutilla, Kerry & Boyd, Roy, 1996. "Incentives for Advanced Pollution Abatement Technology at the Industry Level: An Evaluation of Policy Alternatives," Journal of Environmental Economics and Management, Elsevier, vol. 30(1), pages 95-111, January.
    5. 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.
    6. Jiunn-Rong Chiou & Jin-Li Hu, 2001. "Environmental Research Joint Ventures under Emission Taxes," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 20(2), pages 129-146, October.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Green Technology; Research Joint Ventures; Optimal Emissions Taxation;

    JEL classification:

    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation

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