at Google ScholarTitle data
Herweg, Fabian:
Adoption of green technology with financial friction.
In: Finance Research Letters.
Vol. 71
(2025)
.
- 106388.
ISSN 1544-6123
DOI: https://doi.org/10.1016/j.frl.2024.106388
Abstract in another language
We investigate firms’ incentives to adopt green technology. To cover the adoption costs, a firm needs a bank loan. The bank cannot observe firms’ adoption costs and offers a loan contract that allows it to earn an intermediation margin. The Pigouvian tax leads to optimal abatement but inefficiently low adoption. The first-best outcome is achieved via a combination of environmental tax and loan subsidy. If the regulator is restricted to an environmental tax, it faces a trade-off between optimal adoption and optimal abatement. In this case, the second-best tax rate exceeds the Pigouvian tax rate.
Further data
| Item Type: | Article in a journal |
|---|---|
| Refereed: | Yes |
| Keywords: | Abatement technology; Financing constraint; Green investment; Pigouvian taxation |
| Institutions of the University: | Faculties > Faculty of Law, Business and Economics > Department of Economics > Chair Economics VIII - International Competition Policy > Chair Economics VIII - International Competition Policy - Univ.-Prof. Dr. Fabian Herweg Faculties Faculties > Faculty of Law, Business and Economics Faculties > Faculty of Law, Business and Economics > Department of Economics Faculties > Faculty of Law, Business and Economics > Department of Economics > Chair Economics VIII - International Competition Policy |
| Result of work at the UBT: | Yes |
| DDC Subjects: | 300 Social sciences > 330 Economics |
| Date Deposited: | 22 Feb 2025 22:02 |
| Last Modified: | 24 Feb 2025 06:32 |
| URI: | https://eref.uni-bayreuth.de/id/eprint/92525 |