Adoption of a clean technology using a renewable energy
Ben Youssef, Slim
Ecole Supérieure de Commerce de Tunis
September 2010
Online at https://mpra.ub.uni-muenchen.de/25576/
MPRA Paper No. 25576, posted 05 Oct 2010 13:57 UTC
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We have the following ranking for the optimal adoption dates:
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0<τ <τ <τn (22) Therefore, the optimal adoption date for the regulated firm is earlier than the socially optimal one. However, the optimal adoption date for the non regulated firm is later than the socially optimal one.
Proof. See the Appendix.
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The regulator can push the regulated firm to delay its adoption of the clean technology by giving it an innovation subsidy that compensates the firm for the losses it incur when it delays its optimal adoption date to the socially optimal one.
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