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Dr. Milani Published in Academic Journal

Sahar Milani, assistant professor of economics, wrote an article that will be published in the academic journal Environmental and Resource Economics.

The article, titled “The impact of environmental policy stringency on industrial R&D conditional on pollution intensity and relocation costs,” explores how industry level characteristics interact with environmental regulations to affect research and development (R&D), a measure of industry innovation. 

According to Milani, a central idea of the paper is that industries can respond to environmental regulations in two ways. They can either relocate to a foreign country with lax environmental regulations or develop cleaner technologies that reduce the cost of regulation compliance.

The main results of the paper indicate that dirtier industries innovate less while industries that have higher relocation costs innovate more as environmental regulations become more restrictive.