Iowa Board of Regents

Finding a link between emissions taxes and R&D investments

Addressing climate change is a massive and daunting challenge. But many economists say gradually increasing taxes on emissions would significantly reduce the amount of greenhouse gas spewed into the air at the lowest economic cost. James Brown, Kingland MBA Professor and chair of finance in the ISU Ivy College of Business, and his research team found a strong, clear link between countries implementing high emissions taxes and manufacturing firms substantially increasing investments in research and development (R&D).

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