Environmental Preferences and Technological Choices: Is Market Competition Clean or Dirty?-Reference-Cited by-同舟云学术

Environmental Preferences and Technological Choices: Is Market Competition Clean or Dirty?

Published:2023-03-01 Issue:1 Volume:5 Page:1-19
ISSN:2640-205X
Container-title:American Economic Review: Insights
language:en
Short-container-title:American Economic Review: Insights

Author:

Aghion Philippe¹,Bénabou Roland²,Martin Ralf³,Roulet Alexandra⁴

Affiliation:

1. INSEAD, Collège de France, CEP, and CEPR (email: )

2. Princeton University, NBER, CEPR, Briq, ThreD, IZA, and ERINN (email: )

3. Imperial College London, CEP, and CEPR (email: )

4. INSEAD and CEPR (email: )

Abstract

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. (JEL D22, L62, O31, O34, Q52, Q53, Q54)

Publisher

American Economic Association

Subject

Management, Monitoring, Policy and Law,Geography, Planning and Development

Link

https://pubs.aeaweb.org/doi/pdf/10.1257/aeri.20210014

Reference43 articles.

1. The Environment and Directed Technical Change

2. Shift-Share Designs: Theory and Inference*

3. Aghion, Philippe, Roland Bénabou, Ralf Martin, and Alexandra Roulet. 2023. "Replication data for: Environmental Preferences and Technological Choices: Is Market Competition Clean or Dirty?" American Economic Association [publisher], Inter-university Consortium for Political and Social Research [distributor]. https://doi.org/10.3886/E183613V1.

4. Carbon Taxes, Path Dependency, and Directed Technical Change: Evidence from the Auto Industry

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