Regulatory attitudes and environmental innovation in a model combining internal and external R&D
Heyes, A. and Kapur, Sandeep (2011) Regulatory attitudes and environmental innovation in a model combining internal and external R&D. Journal of Environmental Economics and Management 61 (3), pp. 327-340. ISSN 0095-0696.
The extent to which environmental regulatory institutions are either ‘green’ or ‘brown’ impacts not just the intensity of regulation at any moment, but also the incentives for the development of new pollution-control technologies. We set up a strategic model of R&D in which a polluter can deploy technologies developed in-house, or license technologies developed by specialist outsiders (an ‘eco-industry’). Polluters exert R&D effort and may even develop redundant technologies to improve the terms on which they procure technology from outside. We find that, while regulatory bias has an ambiguous impact on the best-available technology, strategic delegation to systematically biased regulators can improve social welfare
|Keyword(s) / Subject(s):||Environmental R&D, abatement technology, strategic delegation, eco-industry|
|School:||Birkbeck Schools and Departments > School of Business, Economics & Informatics > Economics, Mathematics and Statistics|
|Date Deposited:||17 Feb 2011 11:31|
|Last Modified:||17 Apr 2013 12:20|
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