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We reconsider the justifications of R&D subsidies by Spencer and Brander (1983) and others by allowing firms to pool R&D investments and license innovations. In equilibrium R&D joint ventures are formed and licensing occurs in a way that eliminates the strategic benefits of R&D investment in the...
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We examine international cooperation on technological development as a supplement to, or an alternative to …, international cooperation on emission reductions. R&D should be increased beyond the non-cooperative level if (i) the technology … Pigovian level, or (iii) the domestic carbon tax is set directly through an international tax agreement. A second …
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