Arbeitspapier

Modeling biased technical change: Implications for climate policy

Climate-economy models aiming at quantifying the costs and effects of climate change impacts and policies have become important tools for climate policy decision-making. Although there are several important dimensions along which models differ, this paper focuses on a key component of climate change economics and policy, namely technical change. This paper tackles the issues of whether technical change is biased towards the energy sectors, the importance of the elasticity of substitution between factors in determining this bias and how mitigation policy is likely to affect it. The analysis is performed using the World Induced Technical Change model, WITCH. Three different versions of themodel are proposed. The starting set-up includes endogenous technical change only in the energy sector. A second version introduces endogenous technical change in both theenergy and non-energy sectors. A third version of the model embodies different sources of technical change, namely R&D and human capital. Although different formulations ofendogenous technical change have only a minor influence on climate policy costs, the macroeconomic effects on knowledge and human capital formation can vary greatly.

Language
Englisch

Bibliographic citation
Series: Nota di Lavoro ; No. 2010,4

Classification
Wirtschaft
Noncooperative Games
Taxation and Subsidies: Externalities; Redistributive Effects; Environmental Taxes and Subsidies
Renewable Resources and Conservation: Water
Renewable Resources and Conservation: Government Policy
Subject
Technical Change
Climate Policy
Stabilization Cost
Klimaveränderung
Klimaschutz
Umweltschutzkosten
Endogener technischer Fortschritt
Theorie

Event
Geistige Schöpfung
(who)
Carraro, Carlo
De Cian, Enrica
Nicita, Lea
Event
Veröffentlichung
(who)
Fondazione Eni Enrico Mattei (FEEM)
(where)
Milano
(when)
2010

Handle
Last update
10.03.2025, 11:43 AM CET

Data provider

This object is provided by:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.

Object type

  • Arbeitspapier

Associated

  • Carraro, Carlo
  • De Cian, Enrica
  • Nicita, Lea
  • Fondazione Eni Enrico Mattei (FEEM)

Time of origin

  • 2010

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