Commitment and Timing of Environmental Policy, Adoption of New Technology and Repercussions on R&D
We investigate the interplay between environmental policy, incentives to adopt new technology, and repercussions on R&D. We study a model where a monopolistic upstream firm engages in R&D and sells advanced abatement technology to polluting downstream firms which are subject to regulation. We consider for different timing and commitment regimes of environmental tax and permit policies: ex post taxation (or issuing permits) ex interim commitment to a tax rate (a quota of permits) after observing R&D success but before adaption, and two types of ex ante commitment before R&D activity. We study the second best tax and permit rules and rank the policies with respect to welfare.
|Date of creation:||2003|
|Date of revision:|
|Contact details of provider:|| Postal: D-24098 Kiel,Wilhelm-Seelig-Platz 1|
Phone: 0431-880 3282
Fax: 0431-880 3150
Web page: http://www.vwl.uni-kiel.de/en
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:zbw:cauewp:851. 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: (ZBW - German National Library of Economics)
If references are entirely missing, you can add them using this form.