Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/159790
Authors: 
Lambertini, Luca
Poyago-Theotoky, Joanna
Tampieri, Alessandro
Year of Publication: 
2014
Series/Report no.: 
Quaderni - Working Paper DSE 951
Abstract: 
We examine the relationship between competition and innovation in an industry where production is polluting and R&D aims to reduce emissions ("green" innovation). We present an n-firm oligopoly where firms compete in quantities and decide their investment in "green" R&D. When environmental taxation is exogenous, aggregate R&D investment always increases with the number of firms in the industry. Next we analyse the case where the emission tax is set endogenously by a regulator (committed or time-consistent) with the aim to maximise social welfare. We show that an inverted-U relationship exists between aggregate R&D and industry size under reasonable conditions, and is driven by the presence of R&D spillovers.
JEL: 
Q55
Q56
O30
L13
Persistent Identifier of the first edition: 
Creative Commons License: 
https://creativecommons.org/licenses/by-nc/3.0/
Document Type: 
Working Paper

Files in This Item:
File
Size
309.97 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.