Directed Technical Change With Capital-Embodied Technologies: Implications For Climate Policy

Arbeitspapier

We develop a theoretical model of directed technical change in which clean (zero emissions) and dirty (emissions-intensive) technologies are embodied in long-lived capital. We show how obsolescence costs generated by technological embodiment create inertia in a transition to clean growth. Optimal policies involve higher and longer-lasting clean R&D subsidies than when technologies are disembodied. From a low level, emissions taxes are initially increased rapidly, so they are higher in the long run. There is more warming. Introducing spillovers from an exogenous technological frontier representing non-energy-intensive technologies reduces mitigation costs. Optimal taxes and subsidies are lower and there is less warming.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: Nota di Lavoro ; No. 73.2014

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Technological Change: Choices and Consequences; Diffusion Processes ; Environment and Growth ; Climate; Natural Disasters and Their Management; Global Warming ; Environmental Economics: Technological Innovation ; Environmental Economics: Government Policy
• Thema: Climate Change Mitigation ; Directed Technical Change ; Capital-Embodiment ; Investment-Specific Technological Change ; Obsolescence

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Lennox, James A. ; Witajewski, Jan
• Ereignis: Veröffentlichung
• (wer): Fondazione Eni Enrico Mattei (FEEM)
• (wo): Milano
• (wann): 2014

Weitere Informationen

• Handle: http://hdl.handle.net/10419/107711
• Letzte Aktualisierung: 10.03.2025, 11:42 MEZ