Ben Youssef, Slim (2010): Adoption of a clean technology using a renewable energy.
Download (144kB) | Preview
We consider a monopolistic firm producing a good while polluting and using a fossil energy. This firm can adopt a clean technology by incurring an investment cost decreasing exponentially with the adoption date. This clean technology does not pollute and has a lower production cost because it uses a renewable energy. We determine the optimal adoption date for the firm in the cases where it is regulated at each period of time and when it is not regulated. Interestingly, the regulated firm adopts the clean technology earlier than what is socially-optimal. However, the non-regulated firm adopts later than what is socially desired. The regulator can compensate the regulated firm for the loss incurred if he wants that it delays its adoption date to the socially-optimal one. Nevertheless, the regulator may be interested in letting the firm adopts earlier to encourage the diffusion of the use of green technologies in other industries.
|Item Type:||MPRA Paper|
|Original Title:||Adoption of a clean technology using a renewable energy|
|Keywords:||regulation; clean technology; renewable energy; adoption date.|
|Subjects:||H - Public Economics > H5 - National Government Expenditures and Related Policies > H57 - Procurement
D - Microeconomics > D6 - Welfare Economics > D62 - Externalities
Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q5 - Environmental Economics > Q55 - Technological Innovation
Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q4 - Energy > Q42 - Alternative Energy Sources
|Depositing User:||Slim Ben Youssef|
|Date Deposited:||05. Oct 2010 13:57|
|Last Modified:||30. Dec 2015 14:42|
Ben Youssef, S. (2010) ‘’ Adoption of a Cleaner Technology by a Monopoly under Incomplete Information’’, Economics Bulletin, 30, 734- 743.
Caspary, G. (2009) ‘’Gauging the Future Competitiveness of Renewable Energy in Colombia’’, Energy Economics, 31, 443-449.
Dosi, C. and M. Moretto (1997) ‘’ Pollution Accumulation and Firm Incentives to Promote Irreversible Technological Change under Uncertain Private Benefits’’, Environmental & Resource Economics, 10, 285-300.
Li, H., H. C. Jenkins-Smith, C. L. Silva, R. P. Berrens and K. G. Herron (2009) ‘’Public Support for Reducing US Reliance on Fossil Fuels: Investigating Household Willingness-to-Pay for Energy Research and Development’’, Ecological Economics, 68, 731-742.
Nasiri, F. and G. Zaccour (2009) ‘’ An Exploratory Game-Theoretic Analysis of Biomass Electricity Generation Supply Chain’’, Energy Policy, 37, 4514-4522.
Pillai, I. R. and R. Banerjee (2009) ‘’Renewable Energy in India: Status and Potential’’, Energy, 34, 970-980.
Soest, D. P. V. (2005) ‘’ The Impact of Environmental Policy Instruments on the Timing of Adoption of Energy-Saving Technologies’’, Resource and Energy Economics, 27, 235-247.
Varun, R. Prakash and I. K. Bhat (2009) ‘’ Energy, Economics and Environmental Impacts of Renewable Energy Systems’’, Renewable and Sustainable Energy Reviews, 13, 2716-2721.
Whitehead, J. C. and T. L. Cherry (2007) ‘’ Willingness to Pay for a Green Energy Program: A Comparison of Ex-Ante and Ex-Post Hypothetical Bias Mitigation Approaches’’, Resource and Energy Economics, 29, 247-261.