Perino, Grischa and Requate, Till (2012) Does more stringent environmental regulation induce or reduce technology adoption? When the rate of technology adoption is inverted U-shaped. Journal of Environmental Economics and Management, 64 (3). pp. 456-467. DOI 10.1016/j.jeem.2012.03.001.

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Abstract

We show that for a broad class of technologies the relationship between policy stringency and the rate of technology adoption is inverted U-shaped. This happens when the marginal abatement cost (MAC) curves of conventional and new technologies intersect, which invariably occurs when emissions are proportional to output and technological progress reduces emissions per output. This outcome does not result from policy failure. On the contrary, in social optimum, the relationship between the slope of the marginal damage curve and the rate of technology adoption is also inverted U-shaped. Under more general conditions, these curves can look even more complicated (e.g., such as inverted W-shaped). (C) 2012 Elsevier Inc. All rights reserved.

Document Type:	Article
Keywords:	Induced diffusion, Environmental policy
Research affiliation:	OceanRep > The Future Ocean - Cluster of Excellence Kiel University
Refereed:	Yes
Open Access Journal?:	No
Publisher:	Elsevier
Projects:	Future Ocean
Date Deposited:	14 May 2014 09:44
Last Modified:	31 Jul 2019 05:30
URI:	https://oceanrep.geomar.de/id/eprint/24200

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