Green Technology and Optimal Emissions Taxation

Stuart McDonald () and Joanna Poyago-Theotoky

No 2014.59, Working Papers from Fondazione Eni Enrico Mattei

Abstract: We examine the impact of an optimal emissions tax on research and development of emission reducing green technology (E-R&D) in the presence of R&D spillovers. We show that the size and effectiveness of the optimal emissions tax depends on the type of the R&D spillover: input or output spillover. In the case of R&D input spillovers (where only knowledge spillovers are accounted for), the optimal emissions tax required to stimulate R&D is always higher than when there is an R&D output spillover (where abatement and knowledge spillovers exist simultaneously). We also find that optimal emissions taxation and cooperative R&D complement each other when R&D spillovers are small, leading to lower emissions.

Keywords: Environmental R&D; Green Technology; R&D Spillover; Emissions Tax (search for similar items in EconPapers)
JEL-codes: H23 L11 Q55 (search for similar items in EconPapers)
Date: 2014-06
New Economics Papers: this item is included in nep-ene, nep-ino, nep-pbe, nep-pub, nep-res, nep-sbm and nep-tid
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Related works:
Journal Article: Green Technology and Optimal Emissions Taxation (2017)
Working Paper: Green Technology and Optimal Emissions Taxation (2014)
Working Paper: Green Technology and Optimal Emissions Taxation (2014)
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Persistent link: https://EconPapers.repec.org/RePEc:fem:femwpa:2014.59

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