Conference Agenda
Overview and details of the sessions of this conference. Please select a date or location to show only sessions at that day or location. Please select a single session for detailed view (with abstracts and downloads if available).
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Daily Overview |
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Carbon taxation and climate policy Location: Auditorium C: Thore Johnsen Session Chair: Rik Rozendaal, Tilburg University | |
| Presentation 4 | |
Market Power, Innovation, and the Green Transition (Best Doctoral Dissertation Award) Tilburg University, Netherlands, The This paper studies the relationship between climate policy, market power and innovation. Using linked data on patent applications and firms’ balance sheets, I document five empirical facts, some of them novel to the literature. Most importantly, I find that firms with a higher degree of market power are, on average, more invested in dirty technologies than their direct competitors. These findings motivate me to develop a model of directed technical change and the environment with strategic innovation incentives, incorporating all five facts. Firms compete for market power by innovating in clean or dirty technologies. A carbon tax can decrease the effective technological distance between two competitors, and thus affects market power and both the intensity and the direction of innovation. In the calibrated model, the increase of a carbon tax lowers aggregate markups and increases clean innovation while also increasing dirty innovation by some firms. | |
