R&D Cooperation, Innovation Spillovers and Firm Location in a Model of Environmental Policy

Carlo Carraro () and Antoine Soubeyran

G.R.E.Q.A.M. from Universite Aix-Marseille III

Abstract: In this paper the reaction of firms to the introduction of environmental charges in a given industry is analysed. Firms may decide either to relocate their plants abroad or to adopt a new environmental-friendly technology. The latter can be either developed by investing in R&D or obtained by buying a licence. We show that, even if domestic firms share the same initial technology, at the equilibrium they make different choices in reponse to the same environmental policy.

Keywords: ENVIRONMENTAL ECONOMICS; RESEARCH AND DEVELOPMENT; LOCATION OF INDUSTRY; LICENCES (search for similar items in EconPapers)
JEL-codes: F13 F21 L51 O32 Q28 (search for similar items in EconPapers)
Pages: 16 pages
Date: 1998
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Citations: View citations in EconPapers (6)

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Chapter: R&D cooperation, innovation spillovers and firm location in a model of environmental policy (1999)
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Persistent link: https://EconPapers.repec.org/RePEc:fth:aixmeq:98a43

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