Environmental innovation and the cost of pollution abatement

The impact of environmental innovation on the marginal pollution abatement cost at the ﬁrm level is investigated. We show that the common assumption that innovation reduces the marginal abatement cost is wrong. We draw some implications about the incentives to innovate under environmental regulation. In particular, we ﬁnd that adopting an environmental friendly tech- nology may lead to more pollution and less proﬁt at the ﬁrm level.

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Year of publication:	2006-04
Authors:	BRECHET, Thierry ; JOUVET, Pierre-André
Institutions:	Center for Operations Research and Econometrics (CORE), École des Sciences Économiques de Louvain
Subject:	innovation \| pollution abatement cost \| production function \| environmen- tal regulation

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Extent:	application/pdf
Series:	CORE Discussion Papers.
Type of publication:	Book / Working Paper
Notes:	The text is part of a series UNIVERSITE CATHOLIQUE DE LOUVAIN, Center for Operations Research and Econometrics (CORE) Number 2006040
Classification:	H23 - Externalities; Redistributive Effects ; Environmental Taxes and Subsidies ; L51 - Economics of Regulation
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005042965