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...

This paper addresses the impact of endogenous technology through research and development (Ramp;D) and learning by doing (LbD) on the timing of environmental policy. We develop two models, the first with Ramp;D and the second with LbD. We study the interaction between environmental taxes and...

Many countries are implementing or at least considering policies to counter increasingly certain negative impacts from climate change. An increasing amount of research has been devoted to the analysis of the costs of climate change and its mitigation, as well as to the design of policies, such...