It is widely assumed in the literature that environmental innovation reduces the marginal cost of pollution abatement. In this paper we show that this is not necessarily the case and we provide some unexpected outcomes.
Environmental regulation, Innovation, Pollution abatement cost
|Authors||Bréchet, Thierry (Center for Operations Research and Econometrics, Catholic University of Louvain, Belgium), Jouvet, Pierre-André (EconomiX, Universite of Nanterre, France)|
|Keywords:||Environmental regulation, Innovation, Pollution abatement cost|