scholarly journals Green Innovation and Competition: R&D Incentives in a Circular Economy

Games ◽  
2021 ◽  
Vol 12 (3) ◽  
pp. 68
Author(s):  
Giovanna Bimonte ◽  
Maria Grazia Romano ◽  
Maria Russolillo

The present paper provides theoretical insights regarding the determinants of firms’ incentives to invest in a Circular Economy. The analysis relies on a Cournot model disaggregating the disposal cost in the production function. In a non-simultaneous sequential game, two risk-neutral firms are endowed with a green innovation project that, if successful, would reduce the overall production costs and implement a Circular Economy. Firms are plagued by asymmetric information about the exact value of the other firm’s innovation. In this setting, the R&D investment in a Circular Economy, by affecting the distribution of production and disposal costs, influences the production decisions of both the innovating and the rival firms. The sign of the impact depends on the firms’ strategy in the product market. Furthermore, the analysis points out that cooperation in R&D of firms competing in the product market reinforces incentives to invest in green innovation. This suggests that governments aimed to advance a Circular Economy should encourage firms’ cooperation.

2015 ◽  
Vol 46 (1) ◽  
pp. 134-146 ◽  
Author(s):  
Jacek Prokop ◽  
Bartłomiej Wiśnicki

Abstract This paper analyzes the impact of R&D activities in an oligopoly on consumer surplus and social welfare. We use a two-stage model to analyze the behavior of duopolists at the research level, and in the final-product market, under the assumption of linear and quadratic cost functions. Three options for firm competition are considered: 1) Cournot competition at both stages; 2) cooperation at the R&D stage and Cournot competition in the final-product market; and 3) cooperation at both stages. Numerical simulations for various levels of R&D spillovers are conducted to analyze the welfare effects of firm decisions. We conclude that for high levels of technological spillovers, total welfare is highest when firms engage in cooperation at the R&D stage, and compete in the final product market, independent of the shape of cost functions. However, the functional form of production costs has a qualitative impact on welfare when firms fully compete.


2019 ◽  
Vol 101 (3) ◽  
pp. 476-491 ◽  
Author(s):  
Michael D. König ◽  
Xiaodong Liu ◽  
Yves Zenou

We analyze a model of R&D alliance networks where firms are engaged in R&D collaborations that lower their production costs while competing on the product market. We provide a complete characterization of the Nash equilibrium and determine the optimal R&D subsidy program that maximizes total welfare. We then structurally estimate this model using a unique panel of R&D collaborations and annual company reports. We use our estimates to study the impact of targeted versus nondiscriminatory R&D subsidy policies and empirically rank firms according to the welfare-maximizing subsidies they should receive.


The application of preparations of biological origin in the protection system of soybean grown under conditions of intensive irrigated crop rotations conforms to the modern tendencies of science and production development. The use of them contributes to solving ecological, production and social-economic problems. The study presents the three-year research on the efficiency of systems protecting soybean from pests and diseases based on biological and chemical preparations. The research was conducted in typical soil and climate conditions of the South of Ukraine. Zonal agricultural methods and generally accepted research methodology were used. The purpose of the research was to create a soybean protection system based on preparations of biological origin, ensuring high productivity of high-quality products reducing a negative impact of the crop production on the environment. The study emphasizes that, under irrigated conditions of the South of Ukraine, the application of biological preparations has a positive impact on the indexes of growth, development and formation of the elements of soybean yield structure. There was an increase in the crop biological weight by 13.8 % and 22.1 % and the number of seeds per plant rose by 11.6 and 14.6 % as a consequence of eliminating harmful organisms with the plant protection systems. The larger ground mass was formed by medium-ripe varieties Danai and Svyatogor, on which the increase from protection measures was higher. Weight 1000 pcs. the seeds did not undergo significant changes. It is established that the larger seeds were formed by Danaya and Svyatogor varieties, in which the average weight is 1000 pcs. seeds were 142 and 136 g, respectively, while in the variety Diona this figure was 133 g. There was an increase in the height of the lowest pod when the total plant height rose. For medium-ripe varieties was characterized by a higher attachment of beans, where the highest values of this indicator acquired in the variety Svyatogor. The medium maturing soybean variety Danaia formed the maximum yield of 3.23 and 3.35 t/ha respectively, when biological and chemical protection systems were applied. The research establishes that the application of the bio-fungicide Psevdobakterin 2 (2.0 l/ha) in the crop protection system at the beginning of soybean flowering and the bio-fungicide Baktofit (2.5 l/ha) with the bio-insecticide Lepidotsid-BTU (10.0 l/ha) at the beginning of pod formation does not reduce the productivity of the soybean varieties under study considerably, when compared to the application of chemical preparations. The research determines that the soybean protection system under study ensures a decrease in the coefficient of soybean water uptake by 7.2-13.0 %, increasing the total water intake to an inconsiderable degree. Biologization of the soybean crop protection system leads to a reduction in production costs compared to the chemical protection system. Taking into account the needs for the collection of additional products, costs increase by an average of 1 thousand UAH/ha, while for chemical protection systems by 1.8 thousand UAH/ha. At the same time, the cost is reduced by 220-360 UAH/t and the profitability of growing crops is increased by 3.8-7.8 %. There has been a reduction in the burden of pesticides on the environment and the production of cleaner products. This indicates the prospect of using the biofungicides Pseudobacterin 2 and Bactophyte and the bioinsecticide Lepidocid-BTU on soybeans to protect plants from pests.


Author(s):  
Balázs Égert ◽  
Peter Gal

This chapter describes and discusses a new supply-side framework that quantifies the impact of structural reforms on per capita income in OECD countries. It presents the overall macroeconomic impacts of reforms by aggregating over the effects on physical capital, employment, and productivity through a production function. On the basis of reforms defined as observed changes in policies, the chapter finds that product market regulation has the largest overall single policy impact five years after the reforms. But the combined impact of all labour market policies is considerably larger than that of product market regulation. The paper also shows that policy impacts can differ at different horizons. The overall long-term effects on GDP per capita of policies transiting through capital deepening can be considerably larger than the five- to ten-year impacts. By contrast, the long-term impact of policies coming only via the employment rate channel materializes at a shorter horizon.


2021 ◽  
pp. 0958305X2110153
Author(s):  
Chao Li ◽  
Xiangyou Li ◽  
Deyong Song ◽  
Meng Tian

Based on the panel data of 277 cities between 2003 and 2017 and a unique city-level dataset of green patent applications, this study employs the difference-in-differences (DID) method to evaluate the effect of China’s carbon emission trading scheme (ETS) pilots on urban green innovation. The findings indicate that China’s ETS pilots have a positive impact on urban green innovation, and that impact is more significant for municipalities than for prefecture-level cities. Furthermore, the impact on different categories of urban green innovation is heterogeneous. More specifically, China’s ETS pilots have significantly spurred urban green innovation that is closely related to energy conservation and emission reduction, including alternative energy production, transportation, energy conservation and so forth. Moreover, the facilitating effect of China’s ETS pilots on urban green innovation suffers from a lagging effect, which began to show a significant positive effect in 2016. Overall, this paper identifies the effect of China’s ETS pilots on urban green innovation, and suggests that the government should consider the heterogeneity of urban green innovation when designing national ETS policies.


2020 ◽  
Vol 30 (Supplement_5) ◽  
Author(s):  
M Jevtic ◽  
C Bouland

Abstract Public health professionals (PHP) have a dual task in climate change. They should persuade their colleagues in clinical medicine of the importance of all the issues covered by the GD. The fact that the health sector contributes to the overall emissions of 4.4% speaks to the lack of awareness within the health sector itself. The issue of providing adequate infrastructure for the health sector is essential. Strengthening the opportunities and development of the circular economy within healthcare is more than just a current issue. The second task of PHP is targeting the broader population. The public health mission is being implemented, inter alia, through numerous activities related to environmental monitoring and assessment of the impact on health. GD should be a roadmap for priorities and actions in public health, bearing in mind: an ambitious goal of climate neutrality, an insistence on clean, affordable and safe energy, a strategy for a clean and circular economy. GD provides a framework for the development of sustainable and smart transport, the development of green agriculture and policies from field to table. It also insists on biodiversity conservation and protection actions. The pursuit of zero pollution and an environment free of toxic chemicals, as well as incorporating sustainability into all policies, is also an indispensable part of GD. GD represents a leadership step in the global framework towards a healthier future and comprises all the non-EU members as well. The public health sector should consider the GD as an argument for achieving goals at national levels, and align national public health policies with the goals of this document. There is a need for stronger advocacy of health and public-health interests along with incorporating sustainability into all policies. Achieving goals requires the education process for healthcare professionals covering all of topics of climate change, energy and air pollution to a much greater extent than before.


2021 ◽  
Vol 13 (1) ◽  
pp. 413
Author(s):  
Maximilian Kardung ◽  
Kutay Cingiz ◽  
Ortwin Costenoble ◽  
Roel Delahaye ◽  
Wim Heijman ◽  
...  

The EU’s 2018 Bioeconomy Strategy Update and the European Green Deal recently confirmed that the bioeconomy is high on the political agenda in Europe. Here, we propose a conceptual analysis framework for quantifying and analyzing the development of the EU bioeconomy. The bioeconomy has several related concepts (e.g., bio-based economy, green economy, and circular economy) and there are clear synergies between these concepts, especially between the bioeconomy and circular economy concepts. Analyzing the driving factors provides important information for monitoring activities. We first derive the scope of the bioeconomy framework in terms of bioeconomy sectors and products to be involved, the needed geographical coverage and resolution, and time period. Furthermore, we outline a set of indicators linked to the objectives of the EU’s bioeconomy strategy. In our framework, measuring developments will, in particular, focus on the bio-based sectors within the bioeconomy as biomass and food production is already monitored. The selected indicators commit to the EU Bioeconomy Strategy objectives and conform with findings from previous studies and stakeholder consultation. Additionally, several new indicators have been suggested and they are related to measuring the impact of changes in supply, demand drivers, resource availability, and policies on sustainability goals.


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