This paper explores the role of green innovation in attracting venture capital (VC) financing. We use a unique dataset … that matches information on VC transactions, companies' balance sheet variables and data on patented innovation at the firm …

studied for a new type of innovation where new technologies reduce emissions of a specific pollutant but at the same time …-holding firm. This result carries over to other types of innovation. Taxes are inefficient if technologies produce perfect … substitutes and share all scarce inputs. Moreover, the optimal tax on pollution might be negative. …