@techreport{Michaelis2004Incentives,
abstract = {Conventional analysis of the economics of environmental policy usually
claims that emission taxes induce a stronger incentive for an improvement in pollution
abatement technologies compared to emission standards. In contrast, recent empirical
studies reveal that there is no systematic relationship between improvements in pollution
abatement technologies and the policy instrument chosen. The present paper tries to
clarify this contradiction. In the first step the paper shows that the conventional model
of innovation in pollution control under different policy regimes is deficient in at least
two ways: It neglects policy impacts on the firms? output level and it assumes a rather
unrealistic type of emission standard. In the second step the paper presents a more
elaborated model which tries to overcome these shortcomings. Using this model it is
shown that the impact on innovation in pollution control caused by taxes and standards
strongly depends on the scale of technical progress as well as on the cost structure of the
firm under consideration such that there is no unique ranking of the two policies. Finally,
the paper discusses the policy implications of these findings.},
author = {Peter Michaelis and J\"{u}rgen Dietz},
copyright = {http://www.econstor.eu/dspace/Nutzungsbedingungen},
keywords = {H23; Q55; 330; Emission Standards; Emission Taxes; Incentives to Innovate; Umweltauflage; \"{O}kosteuer; Umweltabgabe; Umwelttechnik; Innovation; \"{O}konomischer Anreiz; Theorie},
language = {eng},
number = {263},
title = {Incentives for Innovation in Pollution Control : Emission Standards Revisited},
type = {Volkswirtschaftliche Diskussionsreihe / Institut f\"{u}r Volkswirtschaftslehre der Universit\"{a}t Augsburg},
url = {http://hdl.handle.net/10419/22786},
year = {2004}
}
