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The Design and Implementation of US Climate Policy$
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Don Fullerton and Catherine Wolfram

Print publication date: 2012

Print ISBN-13: 9780226269146

Published to Chicago Scholarship Online: September 2013

DOI: 10.7208/chicago/9780226921983.001.0001

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PRINTED FROM CHICAGO SCHOLARSHIP ONLINE (www.chicago.universitypressscholarship.com). (c) Copyright University of Chicago Press, 2020. All Rights Reserved. An individual user may print out a PDF of a single chapter of a monograph in CHSO for personal use.date: 26 May 2020

. Regulatory Choice with Pollution and Innovation

. Regulatory Choice with Pollution and Innovation

Chapter:
(p.64) (p.65) 4. Regulatory Choice with Pollution and Innovation
Source:
The Design and Implementation of US Climate Policy
Author(s):

Charles D. Kolstad

Publisher:
University of Chicago Press
DOI:10.7208/chicago/9780226921983.003.0005

This chapter discusses the possible effect that climate change mitigation policy may have on innovation and invention, presents a model of a single innovating firm which licenses its technology to multiple identical atomistic polluting firms, and then illustrates the effect of innovation on marginal abatement costs. It concludes by suggesting that a better empirical understanding of the process of innovation may help design better policies to encourage innovation and abatement.

Keywords:   climate change, mitigation policy, innovation, invention, marginal abatement costs, abatement

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