negative production externalities. In our models, under the tax regime, firms that take no treatment action to mitigate the … damage caused by their negative externalities are punished, whereas under the subsidy regime, firms are rewarded for … as policy objectives: total output, total damage from negative externalities, and social welfare. We find reasonable …

, traditional approaches to innovation assessment focus on financial outcomes and fail to capture the double externalities of …

theory. Environmental issues must go through the filter of economic analysis, and policies have to be evaluated based on the …