Regulatory Standards and Emissions-Reducing R & D
Dartmouth College Working Paper 95-12
Posted: 20 May 1998
Date Written: June 1995
Estimation supports a theoretical role for emissions standards: to reduce negative externalities caused by hazardous air emissions, government can set standards that cause firms to accept the uncertainty of R & D. The paper uses primary data about manufacturers' emissions-reducing process R & D. Responses to a questionnaire--mailed to the companies in the Business Week R & D Scoreboard sample for 1993--provide the new data about R & D to reduce the toxic air emissions of chemicals targeted in Title III of the 1990 Clean Air Act. The companies' emissions-reducing R & D investments increase in response to Schumpeterian competition in the context of emissions regulation.
JEL Classification: O31, O32, O38, L13, L51, K32
Suggested Citation: Suggested Citation