Gerlagh, Reyer; Kverndokk, Snorre; Rosendahl, Knut Einar - 2008
. However, with finite patent lifetime, optimal innovation policy depends on the stage of the environmental problem. In the …This paper addresses the timing and interdependence between innovation and environmental policy in a model of research … and development (R&D). On a first-best path the environmental tax is set at the Pigouvian level, independent of innovation …