Carbon Tax in a Triopoly with Environmental R&D and Knowledge Spillovers
Chenyu Wang () and
Gamal Atallah
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Chenyu Wang: Hunan Institute of Science and Technology, School of Economics and Management
Gamal Atallah: University of Ottawa, Department of Economics
Journal of Quantitative Economics, 2025, vol. 23, issue 4, No 6, 1117-1144
Abstract:
Abstract In a three-stage game-theoretic framework, we build a triopoly model characterized by environmental research and development (R&D) and knowledge spillovers. This study analyzes the effects and implications of environmental technology policies on a polluting triopoly with environmental R&D and knowledge spillovers. In particular, we (i) compare the economic–environmental performance of regimes of R&D competition, R&D partial cartelization, and R&D full cartelization under non-commitment and commitment scenarios; (ii) examine stability conditions between insiders and an outsider in R&D partial cartelization under non-commitment and commitment scenarios; and (iii) investigate the full rank of the firm- and industrial-level variables under different cases. This study provides practical insights into the optimal design of environmental technology policies for government, enterprises, and consumers under a unified analysis framework.
Keywords: Environmental economics; Industrial organization; Triopoly; Carbon tax; Environmental R&D; Knowledge spillovers (search for similar items in EconPapers)
JEL-codes: L13 L51 O33 Q55 Q58 (search for similar items in EconPapers)
Date: 2025
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DOI: 10.1007/s40953-025-00467-5
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