Incentives to innovate under emission taxes and tradeable permits

• Verfasst von: Requate, Tilman [VerfasserIn]
• Titel: Incentives to innovate under emission taxes and tradeable permits
• Verf.angabe: Till Requate
• E-Jahr: 1998
• Jahr: 23 June 1998
• Umfang: 27 S.
• Fussnoten: Gesehen am 08.08.2024
• Titel Quelle: Enthalten in: European journal of political economy
• Ort Quelle: Amsterdam [u.a.] : Elsevier, 1985
• Jahr Quelle: 1998
• Band/Heft Quelle: 14(1998), 1 vom: Feb., Seite 139-165
• ISSN Quelle: 1873-5703
• DOI: doi:10.1016/S0176-2680(97)00048-7
• Datenträger: Online-Ressource
• Sprache: eng
• Bibliogr. Hinweis: Erscheint auch als : Druck-Ausgabe: Requate, Tilman, 1957 - : Incentives to innovate under emission taxes and tradeable permits. - 1998
• Sach-SW: Effluent taxes
• Sach-SW: Incentives to innovate
• Sach-SW: Innovation
• Sach-SW: Tradeable permits
• K10plus-PPN: 189818030X

Abstract

I consider a competitive industry with constant returns to scale and pollution. Pollution control is implemented by either charging an effluent tax, or by auctioning off tradeable permits. The paper investigates the incentive to introduce a cleaner technology under either policy. In contrast to former research this model pays explicit attention to the final output market, finding that it depends crucially on the parameters whether permits or taxes provide a stronger incentive to innovate. Moreover we find that under taxes welfare may go down if a new technology is introduced whereas this can never happen under permits.