Can Environmental Policy Encourage Technical Change? Emissions Taxes and R&D Investment in Polluting Firms
نویسندگان
چکیده
Abstract Higher country taxes on noxious manufacturing emissions lead to substantial increases in firms’ R&D spending. The response is entirely driven by those high-pollution firms most affected taxes. Pollution increase the marginal value of spending polluting firms, even when this does not new innovation. have strongest effect investment sectors which invention difficult appropriate and outside knowledge easier acquire, suggesting an important reason dirty invest expand their capacity absorb external technical know-how.
منابع مشابه
Optimal Enforcement Policy and Firms’ Emissions and Compliance with Environmental Taxes∗
In a market where firms with different characteristics decide upon both the level of emissions and their reports, we study the optimal audit policy for an enforcement agency whose objective is to minimize the level of emissions. We show that it is optimal to devote the resources primarily to the easiest-to-monitor firms and to those firms that value pollution the less. Moreover, unless the budg...
متن کاملEnvironmental Policy and Time Consistency: Emission Taxes and Emissions Trading
The findings, interpretations, and conclusions expressed in this paper are entirely those of the authors. They do not necessarily represent the views of the World Bank, its Executive Directors, or the countries they represent. A key consideration in the choice of pollution control instruments is the incentive for regulated firms to adopt cleaner technologies. The adoption of less polluting prod...
متن کاملEnvironmental Investment and Policy with Distortionary Taxes and Endogenous Growth
Recent studies consider public R&D spending that affects abatement knowledge and endogenous growth, distortionary taxes that affect physical and human capital formation, pollution taxes that affect environmental degradation, and regeneration that restores natural capital. Our model combines all of those elements. We show how the combination affects results from each prior model, focusing on two...
متن کاملEnvironmental Concerns, Environmental Policy and Green Investment
Environmental regulators often use environmental policy to induce green investment by firms. However, if an environmental policy fails to exert a long-run effect on regulating the economic agents' behavior, it may be more reasonable to think of the firm as the leader in the game, since the investment in green technology is usually a strategic decision. In this paper, we consider a three-stage S...
متن کاملThe Dynamic Impact of Unilateral Environmental Policies
This paper builds a two-country, two-sector (polluting, nonpolluting) trade model with directed technical change, examining whether unilateral environmental policies can ensure sustainable growth. The polluting good generates more or less emissions depending on its relative use of a clean and a dirty input. I show that a unilateral policy combining clean research subsidies and a trade tax can e...
متن کاملذخیره در منابع من
با ذخیره ی این منبع در منابع من، دسترسی به آن را برای استفاده های بعدی آسان تر کنید
ژورنال
عنوان ژورنال: Review of Financial Studies
سال: 2022
ISSN: ['0893-9454', '1465-7368']
DOI: https://doi.org/10.1093/rfs/hhac003