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| Tekijä: | Greaker, M. |
| Otsikko: | Spillovers in the development of new pollution abatement technology: a new look at the Porter-hypothesis |
| Lehti: | Journal of Environmental Economics and Management
2006 : VOL. 52:1, p. 411-420 |
| Asiasana: | competitiveness environmental protection innovation pollution control |
| Kieli: | eng |
| Tiivistelmä: | Previously environmental innovations have been analyzed with point of departure in the polluting firm. This paper introduces an upstream market for environmental innovations. A strong environmental policy may then benefit industry competitiveness through its effect on entry into the upstream market. Innovation of new pollution abatement techniques requires a new market to develop. If policy is not strict, few firms enter and are forced to charge a high mark-up in order to cover development costs. At the same time, a strict environmental policy induces higher demand and allows a lower mark-up. In addition, even if the polluting industry in question is export oriented, an especially strict policy may be welfare enhancing. |
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