Emission taxes, clean technology cooperation, and product market collusion: Experimental evidence

Yong, Soo Keong, Friesen, Lana and Mcdonald, Stuart (2018) Emission taxes, clean technology cooperation, and product market collusion: Experimental evidence. Economic Inquiry, . doi:10.1111/ecin.12573


Author Yong, Soo Keong
Friesen, Lana
Mcdonald, Stuart
Title Emission taxes, clean technology cooperation, and product market collusion: Experimental evidence
Journal name Economic Inquiry   Check publisher's open access policy
ISSN 1465-7295
0095-2583
Publication date 2018-03-25
Sub-type Article (original research)
DOI 10.1111/ecin.12573
Open Access Status DOI
Total pages 30
Place of publication Hoboken, NJ United States
Publisher Wiley-Blackwell Publishing
Language eng
Subject 1400 Business, Management and Accounting
2002 Economics and Econometrics
Abstract We use a laboratory experiment to study the link between cooperative research and development (R&D) in clean technology and collusion in a downstream product market in the presence of a time-consistent emissions tax. Such a tax creates additional interconnections between firms, in addition to the standard technological spillovers. Our results show a strong link between R&D cooperation and market collusion under symmetric R&D spillovers in a duopoly, but when the spillovers are asymmetric, R&D cooperation does not necessarily result in collusion. With symmetric spillovers, the link between R&D cooperation and collusion remains strong even in three- and four-firm industries.
Q-Index Code C1
Q-Index Status Provisional Code
Institutional Status UQ

Document type: Journal Article
Sub-type: Article (original research)
Collections: HERDC Pre-Audit
School of Economics Publications
 
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Created: Fri, 06 Apr 2018, 00:01:19 EST