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Declining pollution abatement R&D in the United States: theory and evidence

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  • David Grover

Abstract

Industrial R&D spending in the United States for the specific purpose of abating conventional pollution declined appreciably in real terms over the period 1973–1998, both as a share of total industrial R&D spending, and as a share of pollution abatement and control expenditure. I use industry-level panel data for this period to investigate the causes of the decline. Hypotheses are derived from a conceptual model of the forces that drive the production of universally new knowledge concerned specifically with abatement. I find evidence that the decline was caused at least in part by policy design changes, and by spillovers from other-industry pollution abatement R&D substituting for R&D spending in the focal industry.

Suggested Citation

  • David Grover, 2017. "Declining pollution abatement R&D in the United States: theory and evidence," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 26(5), pages 845-863.
    • Handle: RePEc:oup:indcch:v:26:y:2017:i:5:p:845-863.
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    File URL: http://hdl.handle.net/10.1093/icc/dtw053
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    Citations

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    Cited by:

    1. Qian Wang & Zhuoya Du & Boyu Wang & Yung‐ho Chiu & Tzu‐Han Chang, 2022. "Environmental regulation and foreign direct investment attractiveness: Evidence from China provinces," Review of Development Economics, Wiley Blackwell, vol. 26(2), pages 899-917, May.
    2. Kesidou, Effie & Wu, Lichao, 2020. "Stringency of environmental regulation and eco-innovation: Evidence from the eleventh Five-Year Plan and green patents," Economics Letters, Elsevier, vol. 190(C).

    More about this item

    JEL classification:

    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy
    • Q50 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - General
    • Q52 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Pollution Control Adoption and Costs; Distributional Effects; Employment Effects
    • Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation

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