publication . Article . 2014

Eco-Technology Licensing under Emission Tax: Royalty vs. Fixed-Fee

Kim, S. -L; Sang-Ho Lee;
Open Access
  • Published: 01 Jan 2014
Abstract
This article considers the licensing strategies of eco-technology when an innovator provides pollution abatement goods to oligopolistic polluting firms that produce consumption goods and emit environmental pollutants. In the presence of emission tax, two types of licensing contracts, royalty and fixed-fee, are examined to analyze market equilibrium and to compare their welfare consequences. We show that an eco-innovator provides a non-exclusive license under a royalty contract while it might exclude polluting firms under the fixed-fee licensing contract. However, when mixed licensing contract where royalty and fixed-fee contracts are combined together is availab...
Subjects
free text keywords: Eco-Technology, Fixed-Fee Licensing, Royalty Licensing, Emission Tax, jel:L13, jel:D45, jel:Q55, jel:Q58
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