Who invests more in advanced abatement technology? Theory and evidence

Jing Cao, Larry Qiu and Mohan Zhou

Canadian Journal of Economics, 2016, vol. 49, issue 2, 637-662

Abstract: We study firm investment in abatement technology under a heterogeneous-firm framework. We find that more-productive firms make more (less) investment in abatement technology if investment and productivity are complements (substitutes). Under linear demand, firms abatement investments exhibit an inverted U-shape with respect to productivity level. This finding is in contrast to results in existing studies. We also find that in response to tightened environmental regulations, more-productive firms raise their respective investments in abatement technology, whereas less-productive firms do the opposite. More-productive firms have lower pollution emission intensity. The key theoretical predictions are confirmed by empirical tests using Chinese data.

JEL-codes: Q50 (search for similar items in EconPapers)
Date: 2016
References: Add references at CitEc
Citations: View citations in EconPapers (24)

Downloads: (external link)
https://doi.org/10.1111/caje.12208 (text/html)
access restricted to subscribers

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cje:issued:v:49:y:2016:i:2:p:637-662

Ordering information: This journal article can be ordered from
https://www.economic ... ionen/membership.php

Access Statistics for this article

Canadian Journal of Economics is currently edited by Zhiqi Chen

More articles in Canadian Journal of Economics from Canadian Economics Association Canadian Economics Association Prof. Werrner Antweiler, Treasurer UBC Sauder School of Business 2053 Main Mall Vancouver, BC, V6T 1Z2. Contact information at EDIRC.
Bibliographic data for series maintained by Prof. Werner Antweiler ().