Firm's Optimal Decisions under Environmental Policy

碩士 === 僑光科技大學 === 財務金融研究所 === 102 === Research and development makes economy well, and is the most indispensable factor of promoting economic growth, the benefits derived from R&;D is not only upgrade industry standards between firms, but also affect trade between countries. However, the cost of...

Full description

Bibliographic Details
Main Authors: Jyun-mao Yang, 楊駿茂
Other Authors: 葉金標
Format: Others
Language:zh-TW
Published: 2014
Online Access:http://ndltd.ncl.edu.tw/handle/44426765267878377809
Description
Summary:碩士 === 僑光科技大學 === 財務金融研究所 === 102 === Research and development makes economy well, and is the most indispensable factor of promoting economic growth, the benefits derived from R&;D is not only upgrade industry standards between firms, but also affect trade between countries. However, the cost of R&;D will make firms increase, but lower profits, and R&;D has spillover effects. At this moment, if there are two firms product homogeneous goods, another one will have state of mind of free rider in order to reduce their costs and create its profits. Furthermore, when firms have R&;D , it will destroy environmental. Meanwhile,the government in order to protect the ecological environmental, it gives firms preferential subsidies to stimulate firms have to do more R&;D for reducing pollution that we can enjoy a better living. Therefore, this paper mainly D'Aspremont and Jacquemin (1988) model, and refer Chiou and Hu (2001) model to reduce pollution to analyze the optimal production and optimal R&;D at each stage. Finally, from the government's point of view, we solution the total profittotal production, total R&;D, consumer surplus, producer surplus and the optimal social welfare. The mainly conclusion are discussed below: First, investigate the spillover effects from the perspective of static analysis, when the spillover effects is larger, the output will gradually reduce production. At this time, both of them are negative relationship. And because of the increasing of spillover effect, it leads to another firms do not want to do more research, both of them are negative relationship. Second, from a tax point of view to explore static analysis, the government 's subsidy, if the tax rate, firms would be willing to do more research, it will minimize the amount of pollution, and firms turn to do R&;D of environmental pollution, its production will be reduced. Moreover, firms got the subsidies by government, its profits will increase. At this time, it's profits will be affected and reduced, the firms will increase production to enhance their profits. Third, in terms of subsidy and regulatory policy, we can find that the government's subsidy policy would be useful than the control policy, the main reason is that government subsidies for firms, so that firms will not lose too much on research and development costs, and thus firms will produce more products to creat greater profits. Finally, when the government use general to tax firms as standard, the government will have regard to firms cause of it develop to reduce environmental pollution and profits, the government subsidize manfacturers. And when the government established the regulatory policies, the manfacturer 's profit must be based on consumer demand for the product, as well as the spillover effects of regulatory policies to compare at the beginning of the three parameters, the government can decide what strategy to take in the first stage.