Three Essays on Environmental Economics and Industrial Organization:Tradable Permits, Environmental R&D and Taxation

Jianqiao Liu
Chapter 1: Tradable Permits under Environmental and Cost-reducing R&D: This chapter models simultaneous investments in both environmental and cost-reducing R&D by asymmetric Cournot duopolist. Pollution rights (emission permits) are allocated by the regulator and can be traded between firms. Both R&D competition and cooperation are considered. In a three-stage game, firms first invest in R&D, then trade permits, and then compete in output. The strategic interaction between different types of R&D investments is analyzed. It...
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