Working Paper Series # 2006-009 Taxation and Technology Adoption : A Hotelling Approach

@inproceedings{Kriechel2006WorkingPS,
  title={Working Paper Series # 2006-009 Taxation and Technology Adoption : A Hotelling Approach},
  author={Ben Kriechel and Thomas Ziesemer},
  year={2006}
}
  • Ben Kriechel, Thomas Ziesemer
  • Published 2006
Environmental regulation and competitiveness are issues that seem to be at odds. However, the `Porter Hypothesis' states that firms can actually gain in competitiveness if they are subject to stricter environmental regulation. We show in a simple model the basic setting of the problem to apply it then to a Hotelling framework. A non-adoption tax (adoption subsidy) is shown to destroy a non-adoption equilibrium in a closed economy model. We show that taxes not directly targeting the non-adoption… CONTINUE READING