Heyen, Daniel (2016): Strategic Conflicts on the Horizon. R&D Incentives for Environmental Technologies
Heyen, Daniel (2016): Strategic Conflicts on the Horizon. R&D Incentives for Environmental Technologies. In Clim. Change Econ. 07 (04), p. 1650013–1650013. DOI 10.1142/S2010007816500135.
"This paper focuses on a specific mechanism for strategic distortions in this R&D game. In this mechanism, the outlook of future conflicts surrounding technology deployment directly impacts on the willingness to undertake R&D. Apart from free-riding, a different deployment conflict with distortive effects on innovation can occur. Low deployment costs and heterogeneous preferences might give rise to ‘free-driving’ (Weitzman, ML (2015). A voting architecture for the governance of free-driver externalities, with application to geoengineering. The Scandinavian Journal of Economics, 117(4), 1049–1068): The country with the highest preference for technology deployment, the free driver, may dominate the deployment outcome to the detriment of others."