Lambertini, Luca ;
Poyago-Theotoky, Joanna ;
Tampieri, Alessandro
(2014)
Cournot Competition and “Green” Innovation: An Inverted-U Relationship.
Bologna:
Dipartimento di Scienze economiche DSE,
p. 18.
DOI
10.6092/unibo/amsacta/4041.
In: Quaderni - Working Paper DSE
(951).
ISSN 2282-6483.
Full text available as:
Abstract
We examine the relationship between competition and innovation in an industry where production is polluting and R&D aims to reduce emissions (“green” innovation). We present an n-firm oligopoly where firms compete in quantities and decide their investment in “green” R&D.
When environmental taxation is exogenous, aggregate R&D investment always increases with the number of firms in the industry. Next we analyse the case where the emission tax is set endogenously by a regulator (committed or time-consistent) with the aim to maximise social welfare. We show that an inverted-U relationship exists between aggregate R&D and industry size under reasonable conditions, and is driven by the presence of R&D spillovers.
Abstract
We examine the relationship between competition and innovation in an industry where production is polluting and R&D aims to reduce emissions (“green” innovation). We present an n-firm oligopoly where firms compete in quantities and decide their investment in “green” R&D.
When environmental taxation is exogenous, aggregate R&D investment always increases with the number of firms in the industry. Next we analyse the case where the emission tax is set endogenously by a regulator (committed or time-consistent) with the aim to maximise social welfare. We show that an inverted-U relationship exists between aggregate R&D and industry size under reasonable conditions, and is driven by the presence of R&D spillovers.
Document type
Monograph
(Working Paper)
Creators
Keywords
"green" R&D, R&D spillovers, emission taxation, time-consistent emission tax, pre-commited emission tax
Subjects
ISSN
2282-6483
DOI
Deposit date
25 Jun 2014 08:39
Last modified
25 Jul 2016 08:47
URI
Other metadata
Document type
Monograph
(Working Paper)
Creators
Keywords
"green" R&D, R&D spillovers, emission taxation, time-consistent emission tax, pre-commited emission tax
Subjects
ISSN
2282-6483
DOI
Deposit date
25 Jun 2014 08:39
Last modified
25 Jul 2016 08:47
URI
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