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| Author: | Cadot, O. Sinclair-desgagne, B. |
| Title: | Environmental standards and industrial policy |
| Journal: | Journal of Environmental Economics and Management
1995 : SEP, VOL. 29:2, p. 228-237 |
| Index terms: | ENVIRONMENT STANDARDS INDUSTRIAL POLICY |
| Language: | eng |
| Abstract: | The paper analyzes a regulatory problem where the government can commit to adopting stricter environmental standards but not to a date for regulatory change. The issue is to find a path toward a more stringent environmental requirements which avoids putting domestic firms at a competitive disadvantage. The authors show how the government can use the threat of an immediate tightening of environmental standards to induce domestic firms to develop a technology capable of coping with those standards. |
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