Green Technology and Optimal Emissions Taxation
Stuart McDonald () and
Working Paper series from Rimini Centre for Economic Analysis
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)
New Economics Papers: this item is included in nep-env, nep-ino, nep-pbe, nep-pub and nep-tid
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Journal Article: Green Technology and Optimal Emissions Taxation (2017)
Working Paper: Green Technology and Optimal Emissions Taxation (2014)
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Persistent link: https://EconPapers.repec.org/RePEc:rim:rimwps:07_14
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