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This paper addresses the timing and interdependence between innovation and environmental policy in a model of research and development (Ramp;D). On a first-best path the environmental tax is set at the Pigouvian level, independent of innovation policy. With infinite patent lifetime, the Ramp;D...
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flexibility in their timing of emission reductions; and (ii) integrating climate policy with other policies, thereby optimising … model with bottom-up information on abatement techniques is used to show that the optimal timing of GHG emission reductions … tends to follow the timing for the other environmental themes with an additional emphasis on emission reductions in the …
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