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

Principal Investigator(s): View help for Principal Investigator(s) Philippe Aghion, INSEAD; Roland Benabou, Princeton University; Ralf Martin, Imperial College London; Alexandra Roulet, INSEAD

Version: View help for Version V1

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input data			12/20/2022 01:15:PM
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0_ABMR_Rwrapper.pdf	application/pdf	413.3 KB	12/20/2022 06:01:AM
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Project Citation:

Aghion, Philippe, Benabou, Roland, Martin, Ralf, and Roulet, Alexandra. Data and Code for: Environmental Preferences and Technological Choices: Is Market Competition Clean or Dirty? Nashville, TN: American Economic Association [publisher], 2023. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2023-03-17. https://doi.org/10.3886/E183613V1

Project Description

Summary:

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 8,562

automobile-sector firms in 41 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.

Scope of Project

JEL Classification:
D40 Market Structure, Pricing, and Design: General

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Published Versions

V1 [2023-03-17]

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