Petrakis, Emmanuel; Poyago-Theotoky, Joanna - University <Nottingham> / Department of Economics - 1999
We introduce pollution, as a by-product of production, into a non-tournament model of R&Dwith spillovers. Technology policy takes the form of either R&D subsidisation or pre-competitiveR&D cooperation. We show that, when the emissions tax is exogenous, the optimal R&Dsubsidy can be negative,...