Too Much R&D Although Polluters Underestimate Environmental Harm?
نویسندگان
چکیده
This paper shows that polluters who underestimate environmental harm might invest excessively in promoting technological change in pollution control under environmental liability law. Neither strict liability nor negligence can prevent such a distortion. However, we define a second best due care standard under negligence that induces a welfare superior R&D equilibrium. If, on the other hand, polluters overestimate environmental damage they may underinvest in R&D under strict liability but invest socially optimal under negligence.
منابع مشابه
Environmental Economics and Human Health
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