Ben Youssef, Slim (2009): Transboundary Pollution and Absorptive Capacity.
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The impact of the investment in absorptive capacity on transboundary pollution is studied by considering two countries each of them regulating a firm. Firms can invest in original research and in absorptive research to lower their pollution intensity. The absorptive research enables a firm to capture part of the original research made by the other one. We show that by means of adequate emission taxes, original and absorptive R&D subsidies, non-cooperating regulators can reach the social optimum. Interestingly, we show that the investment in absorptive research enables non-cooperating regulators to better internalize transboundary pollution. The higher is the ability parameter of absorption, the greater is the proportion of transboundary pollution internalized. Therefore, it is recommended for the international community to make the patent laws more flexible and enabling learning from the research made by others more interesting.
|Item Type:||MPRA Paper|
|Original Title:||Transboundary Pollution and Absorptive Capacity|
|Keywords:||Transboundary Pollution; Original Research; Absorptive Research; Internalization; Social Optimum.|
|Subjects:||D - Microeconomics > D6 - Welfare Economics > D62 - Externalities
O - Economic Development, Technological Change, and Growth > O3 - Technological Change; Research and Development; Intellectual Property Rights > O32 - Management of Technological Innovation and R&D
H - Public Economics > H2 - Taxation, Subsidies, and Revenue > H23 - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
C - Mathematical and Quantitative Methods > C7 - Game Theory and Bargaining Theory > C72 - Noncooperative Games
|Depositing User:||Slim Ben Youssef|
|Date Deposited:||07. Sep 2009 18:59|
|Last Modified:||20. Feb 2013 07:01|
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