Environmental innovation and the cost of pollution abatement

Thierry Bréchet and Pierre-André Jouvet

No 2006040, LIDAM Discussion Papers CORE from Université catholique de Louvain, Center for Operations Research and Econometrics (CORE)

Abstract: The impact of environmental innovation on the marginal pollution abatement cost at the firm level is investigated. We show that the common assumption that innovation reduces the marginal abatement cost is wrong. We draw some implications about the incentives to innovate under environmental regulation. In particular, we find that adopting an environmental friendly tech- nology may lead to more pollution and less profit at the firm level.

Keywords: innovation; pollution abatement cost; production function; environmen- tal regulation. (search for similar items in EconPapers)
JEL-codes: H23 L51 (search for similar items in EconPapers)
Date: 2006-04
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Citations: View citations in EconPapers (9)

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Persistent link: https://EconPapers.repec.org/RePEc:cor:louvco:2006040

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