Journal Article10.1257/POL.4.4.125
Innovation and Climate Change Policy
TL;DR: In this paper, the authors examine whether climate change policies will induce innovation in environmentally friendly technologies and conclude that only for technologies that directly abate carbon pollution will there be an unambiguously positive impact on innovation.
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Abstract: This paper examines whether climate change policies will induce innovation in environmentally friendly technologies. The model dem onstrates that a tighter emissions cap will reduce the scale of fos sil fuel usage and that this will diminish incentives to improve fossil fuel efficiencies. In addition, such policies may stimulate the rela tive demand for innovations that improve the efficiency of alterna tive energy but carbon scarcity may diminish innovation incentives overall. Only for technologies that directly abate carbon pollution will there be an unambiguously positive impact on innovation. These results have implications for climate change targets and the design of climate change policy. (JEL 031, Q54, Q55, Q58)
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Citations
Does a Recession Call for Less Stringent Environmental Policy? A Partial-Equilibrium Second-Best Analysis
TL;DR: In this article, the second-best optimal environmental policy responses to real and financial shocks in a two-period partial equilibrium model with heterogeneous firms, an environmental externality, and credit constraints are analyzed.
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Climate policy and induced R&D: How great is the effect?
Leslie Shiell,Nikita Lyssenko +1 more
TL;DR: In this article, the authors construct a single-knowledge-stock model of R&D, growth and climate to assess the importance of this effect and find strong support for Rezai's (2011) argument that, when the business-as-usual scenario (no policy) is modeled appropriately (all externalities treated as external), sacrifices for early generations associated with optimal climate policy are minor or non-existent.
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How Constant is Constant Elasticity of Substitution? Endogenous Substitution between Clean and Dirty Energy
TL;DR: In this paper , a dynamic general equilibrium model with an endogenous elasticity of substitution that interacts with the relative share of clean inputs in the economy is presented. But the model does not consider the impact of directed technical change and accelerates the transition to a green economy.
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Environmental Policies and directed technological change
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Environmental Policy in the Presence of Induced Technological Change
TL;DR: In this paper, the authors examined the hypothesis that induced technological change (ITC) can dramatically lower the cost of a carbon tax in a static optimal tax model and found that existing empirical evidence can reduce the welfare cost of environmental tax reform by 12%.
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