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We explore the design of self-financing tax-subsidy schemes to solve hold-up problems in environmental regulation. The announcement of the tax rate seems to be preferable to solve hold-up problems with respect to the investment in environmental R&D. In contrast, only the announcement of the...
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protection can stimulate innovation. However, the empirical literature has consistently found skeptical results on the positive … our model, broadening leading breadth can negatively affect innovation because each innovator is incentivized to free …
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