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China's record-breaking economic growth is evoking increasing concern about unaddressed environmental problems. We show that, while city government spending on environmental infrastructure has a demonstrably positive environmental impact, city spending is nonetheless strongly tilted towards...
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We explore the design of self-financing tax-subsidy schemes to solve hold-up problems in environmental regulation. The announcement of the tax rate seems to be preferable to solve hold-up problems with respect to the investment in environmental R&D. In contrast, only the announcement of the...
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be able to expropriate innovations in new abatement technology ex post. This suggests that incentives for environmental R …&D may be lower than the incentives for market goods R&D. This in turn may be used as an argument for environmental R …&D getting more public support than other R&D. In this paper we systematically compare the incentives for environmental R&D with …
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