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 regu...
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| Format: | Article |
| Language: | English |
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EconJournals
2014-09-01
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| Series: | International Journal of Economics and Financial Issues |
| Subjects: | |
| Online Access: | https://dergipark.org.tr/tr/pub/ijefi/issue/31963/352020?publisher=http-www-cag-edu-tr-ilhan-ozturk |
| _version_ | 1828015518150295552 |
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| author | Zeineb Dinar |
| author_facet | Zeineb Dinar |
| author_sort | Zeineb 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. |
| first_indexed | 2024-04-10T10:18:21Z |
| format | Article |
| id | doaj.art-e7c9687b131449fba9389bd0432a8d00 |
| institution | Directory Open Access Journal |
| issn | 2146-4138 |
| language | English |
| last_indexed | 2024-04-10T10:18:21Z |
| publishDate | 2014-09-01 |
| publisher | EconJournals |
| record_format | Article |
| series | International Journal of Economics and Financial Issues |
| spelling | doaj.art-e7c9687b131449fba9389bd0432a8d002023-02-15T16:21:46ZengEconJournalsInternational Journal of Economics and Financial Issues2146-41382014-09-01435015131032Transboundary Pollution, R&D Spillovers, Absorptive Capacity and International TradeZeineb DinarIn 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.https://dergipark.org.tr/tr/pub/ijefi/issue/31963/352020?publisher=http-www-cag-edu-tr-ilhan-ozturktransboundary pollution r&d spillovers absorptive capacity international trade. |
| spellingShingle | Zeineb Dinar Transboundary Pollution, R&D Spillovers, Absorptive Capacity and International Trade International Journal of Economics and Financial Issues transboundary pollution r&d spillovers absorptive capacity international trade. |
| 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 |
| topic | transboundary pollution r&d spillovers absorptive capacity international trade. |
| url | https://dergipark.org.tr/tr/pub/ijefi/issue/31963/352020?publisher=http-www-cag-edu-tr-ilhan-ozturk |
| work_keys_str_mv | AT zeinebdinar transboundarypollutionrdspilloversabsorptivecapacityandinternationaltrade |