Incentives to Diffuse Advanced Abatement Technology Under the Formation of International Environmental Agreements

Alfred Endres () and Bianca Rundshagen ()

Environmental & Resource Economics, 2013, vol. 56, issue 2, 177-210

Abstract: We analyse the incentives for polluting firms to diffuse and adopt advanced abatement technology in a framework in which governments negotiate an international environmental agreement. These incentives crucially depend on whether the underlying environmental policy instrument is an emission tax or an emission quota. The results for the international setting fundamentally differ from those for the national setting that have been elaborated upon in the earlier literature. In particular, equilibrium diffusion and adoption of advanced abatement technology are not necessarily optimal under the tax regime and may be even lower than those under the quota regime. Copyright Springer Science+Business Media B.V. 2013

Keywords: International environmental agreement; Induced technical change; Pollution abatement; Emission taxes; Emission quotas; Q5 (search for similar items in EconPapers)
Date: 2013
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Citations: View citations in EconPapers (6)

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Persistent link: https://EconPapers.repec.org/RePEc:kap:enreec:v:56:y:2013:i:2:p:177-210

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DOI: 10.1007/s10640-012-9596-9

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