Can Environmental Policy Encourage Technical Change? Emissions Taxes and R&D Investment in Polluting Firms

2021 ◽  
Author(s):  
James R. Brown ◽  
Gustav Martinsson ◽  
Christian J. Thomann
Keyword(s):  
Environmental Policy ◽  
Technical Change ◽  
Emissions Taxes ◽  
Polluting Firms ◽  
D Investment

scholarly journals The role of nonzero conjectural variation in pollution abatement and output in the design of emission taxes

2021 ◽  
pp. 1-24
Author(s):  
Luis Gautier
Keyword(s):  
Pollution Abatement ◽  
Emission Taxes ◽  
International Context ◽  
Cooperative Equilibrium ◽  
Emissions Taxes ◽  
Conjectural Variations ◽  
Polluting Firms ◽  
Global Emissions

Abstract The presence of nonzero conjectural variations in pollution abatement and output make emission taxes less effective with respect to reducing emissions. This has implications for the characterization of the optimal emission tax, particularly in an international context where there are large asymmetries in pollution intensities. A higher degree of collusion in output between polluting firms results in higher emissions taxes in the non-cooperative equilibrium. In contrast, a higher degree of collusion in abatement between polluting firms results in lower emissions taxes in the non-cooperative equilibrium. These results rely on the presence of nonzero conjectural variations and large asymmetries in pollution intensities across countries. The analysis is relevant to the design of international environmental policy, including cases where countries face increasing global competition and damages from rising global emissions.

Do environmental policy and innovation improve carbon productivity? Evidence from the Korean Emission Trading Scheme

2021 ◽  
pp. 0958305X2110645
Author(s):  
Jung Youn Mo
Keyword(s):  
Environmental Policy ◽  
Environmental Performance ◽  
Panel Data Analysis ◽  
Emission Trading ◽  
Emission Trading Scheme ◽  
Factors Affecting ◽  
Frontier Analysis ◽  
Trading Scheme ◽  
Carbon Productivity ◽  
D Investment

This study investigates the relationship among technology innovation, emission trading schemes, and carbon productivity based on data from firms participating in the Korean Emission Trading Scheme. First, the total factor carbon productivity based on stochastic frontier analysis is estimated by industry and it is confirmed that changes in carbon productivity vary by industry. Based on the estimated carbon productivity, panel data analysis is conducted to determine the effects of innovation and environmental policy on carbon productivity. The results show that R&D investment and environmental policy play an important role in promoting carbon productivity. In this study, the factors affecting carbon productivity are also analyzed by industry. Comparative analysis across industries confirms that factors affecting environmental performance vary by industry. Innovation does not significantly affect carbon productivity in assembling industries, but in the process industry, R&D investment plays an important role in increasing environmental performance.

scholarly journals Corruption, environmental regulation and market entry

2016 ◽  
Vol 22 (1) ◽  
pp. 66-83 ◽  
Author(s):  
Amit K. Biswas ◽  
Marcel Thum
Keyword(s):  
Environmental Policy ◽  
Environmental Protection ◽  
Environmental Regulation ◽  
Market Entry ◽  
Analytical Framework ◽  
Environmental Standards ◽  
The Government ◽  
Polluting Firms

AbstractThe authors develop a simple analytical framework to study the welfare-maximizing environmental standards when market entry is endogenous and firms can circumvent regulation by bribing corrupt officials. Corruption changes the tradeoff in environmental policy. Corruption leads more polluting firms to enter into the market, which requires tighter environmental regulation. However, corruption also makes trading in some environmental protection for a marginally higher market entry optimal for the government.

scholarly journals Innovation and Environmental Policy: Clean vs. Dirty Technical Change

2010 ◽  
Author(s):  
Maria Antonieta Cunha-e-Sa ◽  
Ana Balcão Balcao Reis ◽  
Alexandra Leitao
Keyword(s):  
Environmental Policy ◽  
Technical Change

Environmental policy in a linear city model of product differentiation

2012 ◽  
Vol 17 (4) ◽  
pp. 461-477 ◽  
Author(s):  
Ana Espínola-Arredondo ◽  
Huan Zhao
Keyword(s):  
Environmental Policy ◽  
Environmental Regulation ◽  
Product Differentiation ◽  
Welfare Gains ◽  
Subsidy Policy ◽  
Tax Subsidy ◽  
Horizontal Product Differentiation ◽  
City Model ◽  
Polluting Firms ◽  
Linear City

AbstractThis paper analyzes how a tax/subsidy policy affects consumers' behavior when choosing between green (pollution-free goods) and conventional products, and its effects on welfare when a proportion of consumers have strong preferences for green goods. We analyze a Hotelling's linear city model where final products by two firms are symmetric in all dimensions except for the externality their production process generates. Our efficiency comparisons suggest that, under a setting of horizontal product differentiation, an environmental regulation (either on polluting firms or consumers buying their products) yields higher social welfare than the absence of policy. Moreover, the proportion of consumers who prefer green products affects the welfare gains from a subsidy or tax policy.

Environmental Policy and Technical Change

1997 ◽  
Vol 8 (4) ◽  
pp. 323-326
Author(s):  
Sonja Boehmer-Christiansen
Keyword(s):  
Environmental Policy ◽  
Technical Change
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