The porter hypothesis and hyperbolic discounting

Prabal Roy Chowdhury

We examine pollution-reducing R&D by a monopoly firm producing a dirty product. In a dynamic framework with hyperbolic discounting, we establish conditions under which the Porter hypothesis goes through, i.e. environmental regulation increases R&D, thus reducing pollution, as well as increasing firm profits. This is likely to hold whenever R&D costs are at an intermediate level, and the planning horizon of the firms is large.

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Year of publication:	[2010]
Authors:	Chowdhury, Prabal Roy
Publisher:	Brussels, Belgium : EERI, Economics and Econometrics Research Institute
Subject:	Porter hypothesis \| abatement tax \| R&D \| hyperbolic discounting \| Theorie \| Theory \| Umweltpolitik \| Environmental policy \| Diskontierung \| Discounting \| Zeitkonsistenz \| Time consistency \| Intertemporale Entscheidung \| Intertemporal choice

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Extent:	1 Online-Ressource (circa 12 Seiten)
Series:	EERI research paper series. - Brussels : EERI, ISSN 2031-4892, ZDB-ID 2861229-2. - Vol. no 2010/42
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Arbeitspapier ; Working Paper ; Graue Literatur ; Non-commercial literature
Language:	English
Other identifiers:	hdl:10419/142603 [Handle]
Classification:	H2 - Taxation, Subsidies, and Revenue ; L1 - Market Structure, Firm Strategy, and Market Performance ; L2 - Firm Objectives, Organization, and Behavior ; L5 - Regulation and Industrial Policy
Source:	ECONIS - Online Catalogue of the ZBW

Persistent link: https://www.econbiz.de/10011524764