Can Environmental Policy Encourage Technical Change? Emissions Taxes and R&D Investment in Polluting Firms
| Autor: | James R. Brown, Gustav Martinsson, Christian Thomann |
|---|---|
| Rok vydání: | 2021 |
| Předmět: |
Pollution
History Polymers and Plastics Natural resource economics media_common.quotation_subject Marginal value Climate Finance Investment (macroeconomics) Investment policy Industrial and Manufacturing Engineering Technical change Absorptive capacity Green growth Economics Business and International Management media_common |
| Zdroj: | SSRN Electronic Journal. |
| ISSN: | 1556-5068 |
| Popis: | Higher country taxes on noxious manufacturing emissions lead to substantial increases in firm R&D spending. The R&D response is driven entirely by the high-pollution firms most affected by emissions taxes. Pollution taxes increase the marginal value of R&D spending in polluting firms, even when this spending does not lead to new innovation. Pollution taxes have the strongest effect on R&D investment in sectors where new invention is harder to appropriate and outside knowledge is easier to acquire, suggesting an important reason dirty firms invest in R&D is to expand their capacity to absorb external knowledge and technical know-how. |
| Databáze: | OpenAIRE |
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