nep-res New Economics Papers
on Resource Economics
Issue of 2005‒04‒03
one paper chosen by
Maximo Rossi
Universidad de la República

  1. The Environmental Porter Hypothesis as a Technology Adoption Problem? By Kriechel,Ben; Ziesemer,Thomas

  1. By: Kriechel,Ben; Ziesemer,Thomas (MERIT)
    Abstract: The Porter Hypothesis postulates that the costs of compliance with environmental standards may be offset by adoption of innovations they trigger. We model this hypothesis using a game of timing of technology adoption. We show that times of adoption are earlier the higher the non-adoption tax. The environmental tax turns the preemption game with low profits into a game with credible precommitment yielding high profits (pro-Porter). If there is a precommitment game without environmental taxes, the introduction of a tax leads to lower profits (anti-Porter).
    Keywords: economics of technology ;
    Date: 2005

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