This paper examines whether and to what extent the well known necessary and sufficient conditions for the innovation of a new production technique remain valid if the new production technique jointly produces an unwanted and at least potentially harmful output. The formal framework employed here...

From the 1990s, the reorientation of the development model, which switched from protective of industrial sector to intensifier of the trade liberalization process, brought the need for reorganization of large productive sectors of the Brazilian economy, were openly forced to face global...