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Full-Text Articles in Economics
Green Technology And Optimal Emissions Taxation, Stuart Mcdonald, Joanna Poyago-Theotoky
Green Technology And Optimal Emissions Taxation, Stuart Mcdonald, Joanna Poyago-Theotoky
Joanna Poyago-Theotoky
We examine the impact of an optimal emissions tax on research and development of emission reducing green technology (E-R&D) in the presence of R\&D spillovers. We show that the size and effectiveness of the optimal emissions tax depends on the type of the R&D spillover: input or output spillover. In the case of R&D input spillovers (where only knowledge spillovers are accounted for), the optimal emissions tax required to stimulate R&D is always higher than when there is an R&D output spillover (where abatement and knowledge spillovers exist simultaneously). We also find that optimal emissions taxation and cooperative R&D complement …
R&D Subsidies, Spillovers, And Privatization In Mixed Markets, Maria Jose Gil-Molto, Joanna Poyago-Theotoky, Vasileios Zikos
R&D Subsidies, Spillovers, And Privatization In Mixed Markets, Maria Jose Gil-Molto, Joanna Poyago-Theotoky, Vasileios Zikos
Joanna Poyago-Theotoky
We examine the use of subsidies to research and development (R&D) in a mixed and a private duopoly market. We show that the socially optimal R&D subsidy is increasing in the degree of spillovers, but it is lower in the private duopoly. The optimal R&D subsidy leads to an increase in total R&D and production; however, it does not lead to the equalization of per firm output and therefore to an efficient distribution of production costs. We also find that privatization of the public firm reduces R&D activity and welfare in the duopoly market. This result stands even when optimal …
R&D Subsidies, Spillovers And Privatization In Mixed Markets, Joanna Poyago-Theotoky, Maria Jose Gil-Molto, Vassilios Zikos
R&D Subsidies, Spillovers And Privatization In Mixed Markets, Joanna Poyago-Theotoky, Maria Jose Gil-Molto, Vassilios Zikos
Joanna Poyago-Theotoky
We examine the use of subsidies to R&D in a mixed and a private duopoly market. We show that the socially optimal R&D subsidy is increasing in the degree of spillovers but it is lower in the private duopoly. The optimal R&D subsidy leads to an increase in total R&D and production, however, it does not lead to the equalisation of per firm output and therefore to an efficient distribution of production costs. We also find that privatization of the public firm reduces R&D activity and welfare in the duopoly market. This result stands even when optimal R&D subsidies are …
Costly Research Joint Ventures: The Role Of Coordination Costs, Rod Falvey, Joanna Poyago-Theotoky, Khemarat Talerngsri Teerasuwannajak
Costly Research Joint Ventures: The Role Of Coordination Costs, Rod Falvey, Joanna Poyago-Theotoky, Khemarat Talerngsri Teerasuwannajak
Joanna Poyago-Theotoky
We consider a simple oligopoly model where firms engage in cost-reducing R&D and compare two R&D regimes: R&D competition and R&D cooperation where firms can enter in a Research Joint Venture (RJV). We introduce coordination costs for the RJV and examine how these affect the equilibrium outcomes. Further, we address the question of the equilibrium versus the optimal size of the RJV. For a given size of the RJV, its members decrease their own R&D as the anticipated coordination costs increase. This results in lower output and profits. On the contrary, the non-RJV firms increase their R&D in response to …