Arbeitspapier

The Incentive to Invest in Environmental-Friendly Technologies: Dynamics Makes a Difference

The established view on oligopolistic competition with environmental externalities has it that, since firms neglect the external effect, their incentive to invest in R&D for pollution abatement is nil unless they are subject to some form of environmental taxation. We take a dynamic approach to this issue, using a simple differential game to show that the conclusion reached by the static literature is not robust, as the introduction of dynamics shows that firms do invest in R&D for environmental-friendly technologies throughout the game. Moreover, our setup also illustrates the existence of multiple equilibria, only one of which is identified by the corresponding static game.

Sprache
Englisch

Erschienen in
Series: Quaderni - Working Paper DSE ; No. 658

Klassifikation
Wirtschaft

Ereignis
Geistige Schöpfung
(wer)
Dragone, Davide
Lambertini, Luca
Palestini, Arsen
Ereignis
Veröffentlichung
(wer)
Alma Mater Studiorum - Università di Bologna, Dipartimento di Scienze Economiche (DSE)
(wo)
Bologna
(wann)
2009

DOI
doi:10.6092/unibo/amsacta/4588
Handle
Letzte Aktualisierung
10.03.2025, 11:44 MEZ

Datenpartner

Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.

Objekttyp

  • Arbeitspapier

Beteiligte

  • Dragone, Davide
  • Lambertini, Luca
  • Palestini, Arsen
  • Alma Mater Studiorum - Università di Bologna, Dipartimento di Scienze Economiche (DSE)

Entstanden

  • 2009

Ähnliche Objekte (12)