PAPER, TAXATION, EMISSIONS (Air pollution), AIR pollution, MARKET segmentation, COOPERATION
Abstract
This paper studies the effects of uncoordinated environmental tax policies on firms' incentives to form bilateral R&D collaborations. It is shown that the complete network is pair-wise stable for small differences in the taxation of environmental emissions. Larger tax differentials may induce firms to abandon all their international collaborations. [ABSTRACT FROM AUTHOR]