Arbeitspapier
How constant is constant elasticity of substitution? Endogenous substitution between clean and dirty energy
The degree of substitutability between clean and dirty energy plays a central role in leading economic analyses of optimal environmental policy. Despite the importance, a constant and exogenous elasticity of substitution has been a dominant theoretical approach. We challenge this assumption by developing a dynamic general equilibrium model with an endogenous elasticity of substitution that interacts with the relative share of clean inputs in the economy. We find strong dynamic feedback effects arising from endogenous substitution capacity that amplifies the impact of directed technical change and accelerates the transition to a green economy.
- Sprache
-
Englisch
- Erschienen in
-
Series: Economics Working Paper Series ; No. 22/369
- Klassifikation
-
Wirtschaft
Energy: General
Environmental Economics: Technological Innovation
Climate; Natural Disasters and Their Management; Global Warming
Technological Change: Choices and Consequences; Diffusion Processes
- Thema
-
elasticity of substitution
directed technical change
climate change
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Jo, Ara
Miftakhova, Alena
- Ereignis
-
Veröffentlichung
- (wer)
-
ETH Zurich, CER-ETH - Center of Economic Research
- (wo)
-
Zurich
- (wann)
-
2022
- DOI
-
doi:10.3929/ethz-b-000535198
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:43 MEZ
Datenpartner
Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Arbeitspapier
Beteiligte
- Jo, Ara
- Miftakhova, Alena
- ETH Zurich, CER-ETH - Center of Economic Research
Entstanden
- 2022
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