Dragone, Davide; Lambertini, Luca; Palestini, Arsen - Rimini Centre for Economic Analysis (RCEA) - 2009
The established view on oligopolistic competition with environmental externalities has it that, since firms neglect the external effect, their incentive to invest in R&D for pollution abatement is nil unless they are subject to some form of environmental taxation. We take a dynamic approach to...