Transboundary Pollution, R&D Spillovers, Absorptive Capacity and International Trade
In this paper, we study the effects of absorptive capacity and R&D spillovers on cross-border pollution in a game played by two regulator-firm hierarchies. By means of a tax per-unit of pollution, a subsidy per-unit of original research and a subsidy per-unit of absorptive research, the regulat...
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| Format: | Article |
| Language: | English |
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EconJournals
2014-06-01
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| Series: | International Journal of Economics and Financial Issues |
| Online Access: | http://mail.econjournals.com/index.php/ijefi/article/view/813 |
| _version_ | 1797920912493772800 |
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| author | Zeineb Aloui Dinar |
| author_facet | Zeineb Aloui Dinar |
| author_sort | Zeineb Aloui Dinar |
| collection | DOAJ |
| description |
In this paper, we study the effects of absorptive capacity and R&D spillovers on cross-border pollution in a game played by two regulator-firm hierarchies. By means of a tax per-unit of pollution, a subsidy per-unit of original research and a subsidy per-unit of absorptive research, the regulators can reach the first-best outcome. We show that, in addition to free R&D spillovers and absorptive research, competition of firms on the common market help non-cooperating countries to better internalize transboundary pollution. More importantly, opening borders increase the per-unit emission-tax and decrease the per-unit original research subsidy. Thus, when the investment-cost parameters are sufficiently high, the international trade increases the original research, production. Consequently, the emission ratio is lower.
Keywords: Transboundary pollution; R&D spillovers; absorptive capacity; international trade.
JEL Classifications: D62; H21; O32.
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| first_indexed | 2024-04-10T14:08:28Z |
| format | Article |
| id | doaj.art-28a7d37c425241aaae9903bdb3de5e1d |
| institution | Directory Open Access Journal |
| issn | 2146-4138 |
| language | English |
| last_indexed | 2024-04-10T14:08:28Z |
| publishDate | 2014-06-01 |
| publisher | EconJournals |
| record_format | Article |
| series | International Journal of Economics and Financial Issues |
| spelling | doaj.art-28a7d37c425241aaae9903bdb3de5e1d2023-02-15T16:09:50ZengEconJournalsInternational Journal of Economics and Financial Issues2146-41382014-06-0143Transboundary Pollution, R&D Spillovers, Absorptive Capacity and International TradeZeineb Aloui Dinar0Faculté des Sciences Economiques et de Gestion de Tunis, Université de Tunis El Manar In this paper, we study the effects of absorptive capacity and R&D spillovers on cross-border pollution in a game played by two regulator-firm hierarchies. By means of a tax per-unit of pollution, a subsidy per-unit of original research and a subsidy per-unit of absorptive research, the regulators can reach the first-best outcome. We show that, in addition to free R&D spillovers and absorptive research, competition of firms on the common market help non-cooperating countries to better internalize transboundary pollution. More importantly, opening borders increase the per-unit emission-tax and decrease the per-unit original research subsidy. Thus, when the investment-cost parameters are sufficiently high, the international trade increases the original research, production. Consequently, the emission ratio is lower. Keywords: Transboundary pollution; R&D spillovers; absorptive capacity; international trade. JEL Classifications: D62; H21; O32. http://mail.econjournals.com/index.php/ijefi/article/view/813 |
| spellingShingle | Zeineb Aloui Dinar Transboundary Pollution, R&D Spillovers, Absorptive Capacity and International Trade International Journal of Economics and Financial Issues |
| title | Transboundary Pollution, R&D Spillovers, Absorptive Capacity and International Trade |
| title_full | Transboundary Pollution, R&D Spillovers, Absorptive Capacity and International Trade |
| title_fullStr | Transboundary Pollution, R&D Spillovers, Absorptive Capacity and International Trade |
| title_full_unstemmed | Transboundary Pollution, R&D Spillovers, Absorptive Capacity and International Trade |
| title_short | Transboundary Pollution, R&D Spillovers, Absorptive Capacity and International Trade |
| title_sort | transboundary pollution r d spillovers absorptive capacity and international trade |
| url | http://mail.econjournals.com/index.php/ijefi/article/view/813 |
| work_keys_str_mv | AT zeinebalouidinar transboundarypollutionrdspilloversabsorptivecapacityandinternationaltrade |