The optimal R&D investment and subsidy under the perspective of emission reduction

Song Zhijie; Sun Qilong

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Science Research Management ›› 2012 ›› Issue (10) : 80-89.

The optimal R&D investment and subsidy under the perspective of emission reduction

Song Zhijie, Sun Qilong

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Abstract

On the basis of game theory, an enterprise R&D model under conditions of R&D subsidy and pollution emission tax has been constructed. With the goal of emission reduction, optimal R&D level, optimal R&D subsidy, and optimal pollution emission tax for the enterprises are studied. The research results show that appropriate emission tax is of benefit to the improvement of the R&D investment and output of enterprises; the R&D subsidy is able to eliminate the effect of push aside and improve the R&D investment greatly. The environment pollution must be controlled in the scope of social acceptable; otherwise, the enterprise production activities will be ultimately stopped by the government.

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emission reduction / spillover level / R&D subsidy / game

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Song Zhijie, Sun Qilong. The optimal R&D investment and subsidy under the perspective of emission reduction[J]. Science Research Management. 2012(10): 80-89

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