Cooperation in Green R&D and Environmental Policies: Taxes or Standards

Marie-Laure Cabon-Dhersin and Natacha Raffin
Additional contact information
Marie-Laure Cabon-Dhersin: LERN - Laboratoire d'Economie Rouen Normandie - UNIROUEN - Université de Rouen Normandie - NU - Normandie Université - IRIHS - Institut de Recherche Interdisciplinaire Homme et Société - UNIROUEN - Université de Rouen Normandie - NU - Normandie Université

Working Papers from HAL

Abstract: In this article, we compare a tax and a standard as environmental tools depending on firms' R&D strategy and the government's ability to credibly commit to its policy. We consider a duopoly model where production is polluting and in an effort to mitigate emissions, firms invest in green R&D (in the presence of technological spillovers) either cooperatively or non-cooperatively. We explore two policy games in which the regulator establishes an emission tax or an emission standard either before or after firms engage in R&D. We endogenize both the firms' R&D strategy and the regulator's choice of policy instrument. We find that when firms choose not to cooperate, an emission standard is socially preferable. Conversely, a tax is the better choice when firms collaborate in green R&D.

Keywords: R&D Cooperation; Spillovers; taxes; standards; Cournot competition; Policy games (search for similar items in EconPapers)
Date: 2023-12-12
New Economics Papers: this item is included in nep-ene and nep-env
Note: View the original document on HAL open archive server: https://normandie-univ.hal.science/hal-03610541v3
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://normandie-univ.hal.science/hal-03610541v3/document (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hal:wpaper:hal-03610541

Access Statistics for this paper

More papers in Working Papers from HAL
Bibliographic data for series maintained by CCSD ().