Timing and Commitment of Environmental Policy, Adoption of New Technology, and Repercussions on R&D

@article{Requate2005TimingAC,
  title={Timing and Commitment of Environmental Policy, Adoption of New Technology, and Repercussions on R&D},
  author={Till Requate},
  journal={Environmental and Resource Economics},
  year={2005},
  volume={31},
  pages={175-199}
}
We investigate the interplay between environmental policy, incentives to adoptnew 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. We consider four different timing and commitment regimes of environmental tax and permit policies: ex post taxation (or issuing permits), interim commitment to a tax rate (a quota of permits) after observing R&D success but before adoption… CONTINUE READING

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