This study explicitly takes into account that the decision to enter into a cooperative R&D relationship is related to the antecedent decision to carry out R&D. This calls for a methodological approach that, at the same time, allows the joint analysis of the determinants of the two decisions and...

We consider a setting where firms undertake emission-reducing R&D and the regulator, who sets the emission tax, is unable to commit credibly. Firms are subject to research spillovers in emission reduction. We examine two regimes with respect to the organization of R&D: independent R&D and an...