Green Technology and Optimal Emissions Taxation

Arbeitspapier

We examine the impact of an optimal emissions tax on research and development of emission reducing green technology (E-R&D) in the presence of R&D spillovers. We show that the size and effectiveness of the optimal emissions tax depends on the type of the R&D spillover: input or output spillover. In the case of R&D input spillovers (where only knowledge spillovers are accounted for), the optimal emissions tax required to stimulate R&D is always higher than when there is an R&D output spillover (where abatement and knowledge spillovers exist simultaneously). We also find that optimal emissions taxation and cooperative R&D complement each other when R&D spillovers are small, leading to lower emissions.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Nota di Lavoro ; No. 59.2014

Classification and Topics

• Classification: Wirtschaft ; Taxation and Subsidies: Externalities; Redistributive Effects; Environmental Taxes and Subsidies ; Production, Pricing, and Market Structure; Size Distribution of Firms ; Environmental Economics: Technological Innovation
• Subject: Environmental R&D ; Green Technology ; R&D Spillover ; Emissions Tax

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): McDonald, Stuart ; Poyago-Theotoky, Joanna
• Event: Veröffentlichung
• (who): Fondazione Eni Enrico Mattei (FEEM)
• (where): Milano
• (when): 2014

Further information

• Handle: http://hdl.handle.net/10419/101957
• Last update: 10.03.2025, 11:45 AM CET