Are clean technology and environmental quality conflicting policy goals? |
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| Institution: | 1. Université catholique de Louvain, CORE and Louvain School of Management, Voie du Roman Pays 34, B-1348 Louvain-la-Neuve, Belgium;2. INRA–UR 1303 ALISS, 65 bd de Brandebourg, 94205 Ivry/Seine, France;3. Ecole Polytechnique, route de Saclay, 91128 Palaiseau, France;1. Zoological Institute and Zoological Museum, Biocentre Grindel, Martin-Luther-King-Platz 3, 20146 Hamburg, Germany;2. Marine Biology Research Group, Ghent University, Krijgslaan 281 S8, 9000 Ghent, Belgium;3. AWI: Alfred Wegener Institute – Helmholtz centre for Polar and Marine Research, Bussestraße 24 & Am Handelshafen 12, 27570 Bremerhaven, Germany;1. Mercator Research Institute on Global Commons and Climate Change, Torgauer Staße 12-15, 10829 Berlin, Germany;2. Potsdam Institute for Climate Impact Research, Leibniz Association, Telegrafenberg, 14473 Potsdam, Germany;3. Technical University of Berlin, Department Economics of Climate Change, Straße des 17. Juni 145, 10623 Berlin, Germany;4. University of Potsdam, Faculty of Economic and Social Sciences, August-Bebel-Straße 89, 14482 Potsdam, Germany;5. Department of Economics, Kiel University, Olshausenstraße 40, 24118 Kiel, Germany;1. China Academy of West Region Development, Zhejiang University, Hangzhou 310058, China;2. School of International Trade and Economics, University of International Business and Economics, Beijing 100029, China |
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| Abstract: | We analyze the effects of an environmental policy on the diffusion of a clean technology. Compared to previous articles we consider that the polluting firms are competitors on the output market and we analyze the effects of the policy on the share of adopting firms in the economy. We show that this share is not monotonic with the stringency of the environmental policy. We also compare the effects of an emission tax and tradable pollution permits and we show that, depending again on the stringency of the policy, either the tax or the permits yields a higher degree of technology adoption. |
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| Keywords: | Innovation Technology adoption Environmental regulation |
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