Green Technology Adoption and the Business Cycle

Arbeitspapier

We analyze the adoption of green technology in a dynamic economy affected by random shocks where demand spillovers are the main driver of technological improvements. Firms’ beliefs and consumers’ anticipations drive the path of the economy. We derive the optimal policy of investment subsidy and the expected time and likelihood of reaching a targeted level of environmental quality under economic uncertainty. This allows us to estimate the value that should be given to the environment in order to avoid an environmental catastrophe as a function of the strength of spillover effects.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: CESifo Working Paper ; No. 6485

Classification and Topics

• Classification: Wirtschaft ; Prices, Business Fluctuations, and Cycles: General (includes Measurement and Data) ; Innovation; Research and Development; Technological Change; Intellectual Property Rights: General ; Environment and Growth ; Environmental Economics: General
• Subject: growth ; sustainability ; uncertainty

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Bourgeon, Jean-Marc ; Hovsepian, Margot
• Event: Veröffentlichung
• (who): Center for Economic Studies and ifo Institute (CESifo)
• (where): Munich
• (when): 2017

Further information

• Handle: http://hdl.handle.net/10419/167471
• Last update: 10.03.2025, 11:42 AM CET