I. Parry, “Optimal Pollution Taxes and Endogenous Technological Progress,” Resource and Energy Economics, Vol. 17, No. 1, 1995, pp. 69-85.

has been cited by the following article:

• TITLE: Environmental Policies and Firm Behavior with Endogenous Investment in R & D

  AUTHORS: Emanuela Giusi Gaeta

  KEYWORDS: Environmental Policies, Technological Change, Energy Saving, Welfare Analysis

  JOURNAL NAME: Technology and Investment, Vol.1 No.2, May 25, 2010

  ABSTRACT: This paper investigates upon the optimal amount of oil usage in an economy characterized by competitive firms and by a monopolistic innovator. It is close in spirit to Denicolo 1999 and Parry 2003. There are two alternative oil saving technologies: the conventional one is promptly available to firms while the advanced one, providing more efficiency in oil saving, must be paid to the monopolistic innovator. By assuming that innovation follows a Poisson process, whose arrival rate depends on the amount of resources invested in R & D, we show that central authority provides higher level of social welfare than market instruments.