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A note the cost of pollution abatement

Thierry Bréchet and Pierre-André Jouvet

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Abstract: 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 technology may lead to more pollution and less profit at the firm level.

Keywords: innovation; pollution abatement cost; production function; environmental regulation (search for similar items in EconPapers)
Date: 2007
Note: View the original document on HAL open archive server: https://hal.science/hal-04139224
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