Gunnar Köhlin

EfD’s Annual Meeting – a virtual success

EfD overcame the challenges presented by the pandemic by carrying out its 14th Annual Meeting in virtual mode. A great line-up of speakers and more participants than ever ensured a successful event…

AFAERE Webinar

Who Benefits from Climate-Friendly Agriculture? The Marginal Returns to a Rainfed System of Rice Intensification in Tanzania Invitation to African Association of Environmental and Resource Economists'…

Date: Thursday 3 December 2020
Location: Webinar

Climate Policy and Innovation in the Absence of Commitment

Submitted by Petter Wikström on

We compare the effects of price and quantity instruments (an emissions tax and a quota with tradable permits) on the incentive to innovate to reduce the cost of an emission-free technology. We assume that the government cannot commit to the level of a policy instrument before R&D occurs but sets the level to be socially optimal after the results of R&D are realized. The equivalence of price and quantity instruments in inducing innovation that is seen in end-of-pipe abatement models does not hold.

Carbon Pricing