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The Environment and Directed Technical Change
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DOI：10.1257/aer.102.1.131.png)
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摘要
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This paper introduces endogenous and directed technical change in a growth model with environmental constraints. The final good is produced from dirty and clean inputs. We show that: (i) when inputs are sufficiently substitutable, sustainable growth can be achieved with temporary taxes/subsidies that redirect innovation toward clean inputs; (ii) optimal policy involves both carbon taxes and research subsidies, avoiding excessive use of carbon taxes; (iii) delay in intervention is costly, as it later necessitates a longer transition phase with slow growth; and (iv) use of an exhaustible resource in dirty input production helps the switch to clean innovation under laissez-faire.
Keyword:
ENDOGENOUS TECHNOLOGICAL-CHANGE
INDUCED INNOVATION
CO2 ABATEMENT
ECONOMICS
PRICES
POLICY
COSTS
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期刊
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11.6
论文数:
5.0K
被引数:
7.5W
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