Author, as appears in the article.: Osório A; Zhang M
Department: Economia
URV's Author/s: Osório da Costa, António Miguel / Zhang, Mimi
Keywords: Policy instruments Green investments Emissions tax mechanisms Contests Carbon neutrality trade investment green investments goals energy empirical-evidence economic-growth contests consumption competition carbon tax carbon neutrality
Abstract: In this paper, we propose three novel emissions tax mechanisms aimed at minimizing economic losses, incentivizing green R&D investments and reducing environmental emissions in a sustainable manner. We merge industrial organization theory and contests theory into a new model to explore the implication of three contest mechanisms of endogenous emissions taxation (i.e., the output contest mechanism, the green R&D investment contest mechanism, and the net emission contest mechanism), in which firms compete in terms of production and green R&D investments in order to pay less taxes. In this context, in order to identify the optimal mechanism, we compare several economic performance indicators like carbon neutrality, total production, emission level, green R&D investment, consumer and producer surplus, welfare, and value added to society. We find that the net emission contest mechanism is the best to achieve carbon neutrality, maximize green R&D investments and minimize emissions in situations or industries in which the environmental damages are moderate to relatively large. However, in situations or industries in which the environmental damages are relatively small, the green R&D investment contest mechanism could be the best.
Thematic Areas: Renewable energy, sustainability and the environment Materiais Interdisciplinar Industrial and manufacturing engineering Green & sustainable science & technology Environmental studies Environmental engineering Environmental chemistry Engenharias iii Ciências ambientais Administração pública e de empresas, ciências contábeis e turismo
licence for use: https://creativecommons.org/licenses/by/3.0/es/
Author's mail: mimi.zhang1@estudiants.urv.cat mimi.zhang1@estudiants.urv.cat antonio.osoriodacosta@urv.cat
Author identifier: 0000-0001-5813-6830 0000-0001-5813-6830 0000-0003-3376-0164
Record's date: 2024-09-07
Papper version: info:eu-repo/semantics/publishedVersion
Link to the original source: https://www.sciencedirect.com/science/article/pii/S2352550922000860
Licence document URL: https://repositori.urv.cat/ca/proteccio-de-dades/
Papper original source: Sustainable Production And Consumption. 31 762-776
APA: Osório A; Zhang M (2022). Using contests to design emission tax mechanisms. Sustainable Production And Consumption, 31(), 762-776. DOI: 10.1016/j.spc.2022.03.033
Article's DOI: 10.1016/j.spc.2022.03.033
Entity: Universitat Rovira i Virgili
Journal publication year: 2022
Publication Type: Journal Publications
Repositori URV