Quantifying distortions from pollution in a R&D endogenous growth model

Artikel

In this note we study the distortions in an endogenous growth model developed by Grimaud and Tournemaine (2007), where new pieces of knowledge are produced in a R&D sector and used to reduce pollution emissions. Using this model along with a realistic calibration, we conclude that the economy strongly underinvests in R&D, such that the policy maker would need to implement a strong tax-subsidy scheme to correct it. We suggest that a subsidy to human capital can also decrease the gap between market and optimal allocations.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Journal: Estudios de Economía ; ISSN: 0718-5286 ; Volume: 41 ; Year: 2014 ; Issue: 1 ; Pages: 149-159 ; Santiago de Chile: Universidad de Chile, Departamento de Economía

Classification and Topics

• Classification: Wirtschaft ; Economic Development: Agriculture; Natural Resources; Energy; Environment; Other Primary Products ; Economic Development: Human Resources; Human Development; Income Distribution; Migration ; Innovation and Invention: Processes and Incentives ; One, Two, and Multisector Growth Models ; Environmental Economics: General
• Subject: pollution ; environmental tax ; R&D ; economic growth ; subsidies

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Neves Sequeira, Tiago ; Ferreira-Lopes, Alexandra
• Event: Veröffentlichung
• (who): Universidad de Chile, Departamento de Economía
• (where): Santiago de Chile
• (when): 2014

Further information

• Handle: http://hdl.handle.net/10419/146720
• Last update: 10.03.2025, 11:44 AM CET