Environmental Preferences and Technological Choices: Is Market Competition Clean or Dirty?
Philippe Aghion
(1, 2, 3)
,
Roland Bénabou
(4, 5, 6, 7)
,
Ralf Martin
(8, 6)
,
Alexandra Roulet
(9, 6)
1
PSE -
Paris School of Economics
2 PJSE - Paris Jourdan Sciences Economiques
3 Collège de France - Chaire Economie des institutions, de l'innovation et de la croissance
4 Princeton University
5 NBER - National Bureau of Economic Research [New York]
6 CEPR - Center for Economic Policy Research
7 IZA - Forschungsinstitut zur Zukunft der Arbeit - Institute of Labor Economics
8 Imperial College London
9 INSEAD-Sorbonne Université Behavioural Lab
2 PJSE - Paris Jourdan Sciences Economiques
3 Collège de France - Chaire Economie des institutions, de l'innovation et de la croissance
4 Princeton University
5 NBER - National Bureau of Economic Research [New York]
6 CEPR - Center for Economic Policy Research
7 IZA - Forschungsinstitut zur Zukunft der Arbeit - Institute of Labor Economics
8 Imperial College London
9 INSEAD-Sorbonne Université Behavioural Lab
Résumé
We investigate the effects of consumers’ environmental concerns and market competition on firms’ decisions to innovate in “clean” technologies. Agents care about their consumption and environmental footprint; firms pursue greener products to soften price competition. Acting as complements, these forces determine R&D, pollution, and welfare. We test the theory using panel data on patents by 7,060 automobile sector firms in 25 countries, environmental willingness to pay, and competition. As predicted, exposure to prosocial attitudes fosters clean innovation, all the more so where competition is strong. Plausible increases in both together can spur it as much as a large fuel price increase.
Domaines
Economies et financesFormat du dépôt | Notice |
---|---|
Type de dépôt | Article dans une revue |
Titre |
en
Environmental Preferences and Technological Choices: Is Market Competition Clean or Dirty?
|
Résumé |
en
We investigate the effects of consumers’ environmental concerns and market competition on firms’ decisions to innovate in “clean” technologies. Agents care about their consumption and environmental footprint; firms pursue greener products to soften price competition. Acting as complements, these forces determine R&D, pollution, and welfare. We test the theory using panel data on patents by 7,060 automobile sector firms in 25 countries, environmental willingness to pay, and competition. As predicted, exposure to prosocial attitudes fosters clean innovation, all the more so where competition is strong. Plausible increases in both together can spur it as much as a large fuel price increase.
|
Auteur(s) |
Philippe Aghion
1, 2, 3
, Roland Bénabou
4, 5, 6, 7
, Ralf Martin
8, 6
, Alexandra Roulet
9, 6
1
PSE -
Paris School of Economics
( 301309 )
- 48 boulevard Jourdan 75014 Paris
- France
2
PJSE -
Paris Jourdan Sciences Economiques
( 578027 )
- 48 boulevard Jourdan 75014 Paris
- France
3
Collège de France - Chaire Economie des institutions, de l'innovation et de la croissance
( 1043633 )
- 11 place Marcelin Berthelot F-75231 Paris Cedex 05
- France
4
Princeton University
( 46584 )
- Princeton, NJ 08544 USA
- États-Unis
5
NBER -
National Bureau of Economic Research [New York]
( 160932 )
- Branch Office NBER New York
5 Hanover Square
16th Floor, Suite 1602
New York, NY 10004-2630
- États-Unis
6
CEPR -
Center for Economic Policy Research
( 143559 )
- Royaume-Uni
7
IZA -
Forschungsinstitut zur Zukunft der Arbeit - Institute of Labor Economics
( 237214 )
- Schaumburg-Lippe-Str. 5-9 D-53113 Bonn Germany
- Allemagne
8
Imperial College London
( 69530 )
- South Kensington Campus, London SW7 2AZ
- Royaume-Uni
9
INSEAD-Sorbonne Université Behavioural Lab
( 1050590 )
- Fontainebleau
- France
|
Langue du document |
Anglais
|
Nom de la revue |
|
Date de publication |
2023-03
|
Volume |
5
|
Numéro |
1
|
Page/Identifiant |
1-19
|
Vulgarisation |
Non
|
Comité de lecture |
Oui
|
Audience |
Internationale
|
Public visé |
Scientifique
|
Domaine(s) |
|
Mots-clés (JEL) |
|
DOI | 10.1257/aeri.20210014 |
UT key WOS | 000946069600001 |
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