This paper investigates firm incentives for developing environmentally clean technologies in a simple two-country model with international oligopoly, and compares them under price and quantity regulations with and without policy cooperation between governments. Under any policy regime, whether...

The purpose of this comment is to correct some mathematical and implicational errors in Roelfsema [in J.Environ.Econom.Management 53, 270-275 (2007)] who points out a new theoretical possibility explaining the discrepancy between theory and evidence about 'the race to the bottom' in...