SNRE MASTER’S PROJECT PLANNING SEMINAR RESEARCH PROPOSAL COVER SHEETKazuaki TakahashiEDUCATIONEXPERIENCESKILLSPERSONALSNRE MASTER’S PROJECT PLANNING SEMINARRESEARCH PROPOSAL COVER SHEETSubmit proposal and unsigned coversheet in electronic form. Also submit two hard copies of the proposal and the signed coversheet.1. A case study of the impact of policies on triggering increases in environmental R&D Title of Project2. Name of Project Advisor Signature / Date3. Client Information: Name of Client Organization Name of Primary Contact ( ) Street Address City, State Zip Code Phone Number Email Address4. Final Team Members: tucky @umich.edu Group Email Name Kazuaki Takahashi Name of Member 1 Signature / Date Name of Member 2 Signature / Date Name of Member 3 Signature / Date Name of Member 4 Signature / Date Name of Member 5 Signature / Date Name of Member 6 Signature / Date Name of Member 7 Signature / Date Name of Member 8 Signature / Date Name of Member 9 Signature / Date Name of Member 10 Signature / Date Name of Member 11 Signature / Date5. Project Summary:This proposed study would focus on revealing the relationship between environmental policies (regulations, subsidies and taxes) and the innovation of the pollutant abatement technology by applying collected data mainly from companies' environmental reports to the revised model offered by Scott (1997). Additionally, this study is intended to suggest an effective policy to trigger the increase of environmental R&D.701-888: 26 January 2004SNRE MASTER’S PROJECT PLANNING SEMINARRESEARCH PROPOSAL COVER SHEET6. NRE 701 Instructor Approval: Raymond De Young Signature / Date701-888: 26 January 2004AbstractPollution abatement technology, which enables manufacturing companies to continue their production withoutpolluting the environment heavily, has had an important role for governments to solve environmental pollutionproblems. R&D investments have an important role in developing the technology. So far, some researcherspropose pollution abatement costs and regulations as factors that affect environmental R&D. For example, Scott(1997) provides that Title III of the 1990 Clean Air Act stimulated R&D investments in his quantitative studyabout his model using Schumpeterian competition (i.e., the rivalry among large firms). However, not significantwork has been done about the impact of other policies such as tax incentives and subsidies, which are possiblefactors encouraging environmental R&D. This proposed study would focus on revealing the relationshipbetween environmental policies (regulations, subsidies and taxes) and the innovation of the pollutant abatementtechnology by applying collected data mainly from companies' environmental reports to the revised modeloffered by Scott (1997). Additionally, this study is intended to suggest an effective policy to trigger the increaseof environmental R&D.Table of ContentsAbstract 2Table of Contents 2Introduction 4Problem statement 4Background 5Description of Proposed Research 6Schedule 8Anticipated Results and Products 9Description of Relevant Institutional Resources 9Budget 10List of References 112IntroductionPollution abatement technology, which enables manufacturing companies to continue their production withoutpolluting the environment heavily, has had an important role for governments to solve environmental pollutionproblems. For example, since the Clean Air Act came into force in the U.S. in the 1970s and the technology toremove air pollutants from exhaust emissions has improved, the E.U., Japan and the U.S. have graduallytightened their regulation rates of automobile exhaust emissions.R&D investments have an important role in developing the technology. As Zachariadis (2003) points out, muchR&D investments affect the number of their patents, which also cause the development of their technology andeconomic advance. He also suggests that the concentration of their funding on research result in innovation intheir whole industry.So far, some researchers propose pollution abatement costs and regulations as factors that affect environmentalR&D. For example, Scott (1997) provides that Title III of the 1990 Clean Air Act stimulated R&D investmentsin his quantitative study about his model using Schumpeterian competition (i.e., the rivalry among large firms).Else, Lanjouw and Mody (1996) construct a patent data for the U.S., Japan and Germany and suggest thatinnovation occurred after one to two years of increases in abatement costs. Jaffe and Palmer (1997) build a paneldata set for U.S. manufacturing industries and prove that pollution abatement expenditures increase R&Dinvestments. Brunnermeier and Cohen (2003) also formulate a panel data set and support that innovation wascaused in responses to increases in abatement costs.However, not significant work has been done about the impact of other policies such as tax incentives andsubsidies, which are possible factors encouraging environmental R&D.This proposed study would focus on revealing the relationship between environmental policies (regulations,subsidies and taxes) and the innovation of the pollutant abatement technology by applying collected data mainlyfrom companies' environmental reports to the revised model offered by Scott (1997). Additionally, this study isintended to suggest an effective policy to trigger the increase of environmental R&D.3Problem statementGovernments have adopted policies to support environmental research and development (R&D) for stimulatingthe development of pollution abatement technology. For instance, the Ministry of the Environment in Japan haveoffered a fund for companies and research institutes which have a promising idea about the technology. It alsohas proposed a tax incentive program for car owners whose car meets a much reduced level of the regulation rateof exhaust emissions.However, not significant work has been done about the impact of other policies such as tax incentives andsubsidies, which are possible factors encouraging environmental R&D.This proposed study would mainly focus
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