Effects of competition forms and market structure on green innovation incentives

Hiroki Iwata

MPRA Paper from University Library of Munich, Germany

Abstract: This paper analyzes the effects of environmental policy on green innovation. We compare the incentives for green innovation in both the Cournot and Bertrand competition. It is shown that positive incentives for green innovation exist in both competition models. When environmental regulations are imposed, the effects of the probability of success on green innovation incentives differ between the Bertrand and Cournot competition. Additionally, we clarify the conditions necessary for the establishment of the Porter hypothesis in both competition models.

Keywords: Cournot and Bertrand competition; Green innovation; Porter hypothesis (search for similar items in EconPapers)
JEL-codes: L13 Q52 Q55 (search for similar items in EconPapers)
Date: 2020-03-27
New Economics Papers: this item is included in nep-com, nep-ene, nep-env, nep-ino, nep-reg and nep-tid
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:99305

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