Environmental policy under product differentiation and asymmetric costs - Does leapfrogging occur and is it worth it?
Jacqueline Rothfels
IWH Discussion Papers,
No. 124,
2000
Abstract
This paper studies the influence of environmental policies on environmental quality, domestic firms, and welfare. Point of departure is Porter’s hypothesis that unilateral environmental regulation may enhance the competitiveness of domestic firms. This hypothesis has recently received considerable support in theoretical analyses, especially if imperfectly competitive markets with strategic behavior on behalf of the agents are taken into account. Our work contributes to this literature by explicitely investigating the implications of asymmetric cost structures between a domestic and a foreign firm sector. We use a partial-equilibrium model of vertical product differentiation, where the consumption of a product causes environmental harm. Allowing for differentiated products, the domestic industry can either assume the market leader position or lag behind in terms of the environmental quality of the produced product. Assuming as a benchmark case that the domestic industry lags behind, we investigate the possibility of the government to induce leapfrogging of the domestic firm, i.e. a higher quality produced by the domestic firm after regulation than that of the competitor prior to regulation. It is shown that in the case of a cost advantage for the domestic firm in the production process the imposition of a binding minimum quality standard can serve as a tool to induce leapfrogging. In case of a cost disadvantage the same result can be achieved through an adequate subsidization of quality dependend production costs. Thus, careful regulation enables the domestic firm in both scenarios to better its competitive position against foreign competitors and to earn larger profits. Additionally, environmental quality and welfare can be enhanced.
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Reform of joint tasks: How far can the federal and state governments disengage? A contribution to the discussion about the new establishment of the German system of public finance
Martin T. W. Rosenfeld
IWH Discussion Papers,
No. 91,
1999
Abstract
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Abolition of joint tasks of federal and state governments
Martin T. W. Rosenfeld
Wirtschaft im Wandel,
No. 4,
1999
Abstract
In der aktuellen Diskussion über die Reform
der deutschen Finanzverfassung wird u.a. die Forderung erhoben, daß der Bund auf seine Beteiligung an den heutigen „Gemeinschaftsaufgaben von
Bund und Ländern“ zukünftig verzichten sollte. Der Artikel geht den Fragen nach, welche Vorteile die Beteiligung des Bundes an den heutigen Gemeinschaftsaufgaben mit sich bringt, und welche dieser Vorteile auch mit anderen Regelungen erreicht werden könnten. In bezug auf einen Teil der
heutigen Gemeinschaftsaufgaben gibt es durchaus plausible Argumente für eine Bundesbeteiligung; wenn diesen Argumenten ein hohes Gewicht zugebilligt werden soll, so müßte die Bundesbeteiligung für die betreffenden Aufgaben erhalten bleiben.
Für die anderen Gemeinschaftsaufgaben läßt sich die Beteiligung des Bundes an der Aufgabengestaltung und -finanzierung demgegenüber heute nicht mehr überzeugend begründen. Allerdings müßten zur Abdeckung des gesamtstaatlichen Steuerungsbedarfs im Bereich dieser Aufgaben neue Institutionen geschaffen werden, wie etwa Verfahren zur Beihilfen-Kontrolle bei der regionalen Wirtschaftsförderung oder eine Ausweitung
der originären Steuereinnahmen der Länder.
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Innovative Milieux: Advanced Posts of Interpenetration between the Economic System and the Science System
Peter Franz
IWH Discussion Papers,
No. 71,
1998
Abstract
A growing number of governments, political parties, and enterprises set the theme „innovation“ on their agenda and join in the global race to more competitive national economies. In this race the concept of the „innovative milieu“ serves as an important point of orientation and as a political target that, on the first glance, seems to be transferable in concrete political measures. A basic feature of innovative milieux is the quick and easy transfer of knowledge to products in demand. This speed-up in the diffusion of knowledge is not only interesting with respect to the economic advantages but also with respect to science. It is the basic thesis of this paper that innovative milieux represent special cases where the economic system and the science system interpenetrate in an extreme way. Empirical findings show that the actors of innovative milieux have a strong cultural proximity to basic attitudes and behavior within the science system. This relates to the institutionalization of trial and error, the reinforcement of exploratory behavior, the flow of information, and to a special mixture of cooperation and competition. An essential feature of innovative milieux derives from the network relations of its actors. These relations have to be balanced a) to the need to create trust and reduce uncertainty, and b) to the need to stay permeable enough for linkages with new actors from outside. With regard to time innovative milieux have to be conceived from an evolutionary perspective. This involves several steps: Development of prerequisites, consolidation, attraction of labor and enterprises from other regions. From the evolutionary perspective, too, possible factors of preventing or accelerating the „entropic death“ (Camagni 1991) of innovative milieux can be discussed. The exceptional character of innovative milieux has consequences for innovation-oriented political strategies. The self-enforcing dynamics of innovative milieux create a tendency to more economic inequality between regions (core-periphery differences). This is contradictory to political strategies in which innovation-oriented policy is applied to reach an offset between prospering and impoverished regions. In many cases a strategy starting from the assumption of an enduring non-innovative milieu seems to be more realistic and more promising. Further on, the new more direct links between enterprises and research institutes question the current shape of technology transfer institutions. Finally the potential effects of the new trend to encourage the entrepreneurship of research staff on the science system are discussed.
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What can a town achieve today? Integration, urban regimes, and the acceptance of models
Peter Franz
IWH Discussion Papers,
No. 56,
1997
Abstract
Since 1990, the date of German reunification, urban development and especially the recovery of inner cities in East Germany has been delayed by several factors including real estate restitution claims, inflexible preservation codes for historic buildings, and the shortage of stores for retailers. This blockade situation has resulted in the quick and intensified development of shopping centres as „inner city substitutes“ on the urban periphery. The combined effect of the factors preventing revitalisation strategies and the newly realised and practised potential for autonomous action by the authorities of smaller municipalities was a severe restriction for the governing capacities of the authorities of the larger cities. in regaining their governance capability city governments are dependent on urban groups joining and supporting public developmental strategies. In accordance with Stone (1993) and Stoker and Mossberger (1994) urban groups active in urban development policy can be described as urban regimes. In Germany three types of regimes can be differentiated. The cities differ with respect to the political strength and the forms of coalition and conflict between different urban regimes. Specific conditions in East Germany have led to a special regime constellation with a powerful „conservation regime“ on the one hand and a vivid „globalisation regime“ on the other hand. This conflicting constellation results in a developmental blockade. The hypothesis is that a third regime type, the „local alliance“, is missing and still has to be created by practices such as city marketing and city management. Only when this regime building process has advanced will new constellations of political coalitions and compromise become possible and be able to reduce governance problems of city government in the long run.
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Reallocation of Competences between Local and Higher Levels of Government as so-called „Functional Reforms“: A Case of (De-) Centralization?
Martin T. W. Rosenfeld
Fiscal Decentralization,
1987
Abstract
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