Taking Time Seriously: Implications for Optimal Climate Policy

Arbeitspapier

Induced innovation and associated issues of path dependence and inertia are of critical importance in the transition to a carbon free economy. We develop a model that, instead of modeling these processes themselves, models the implications of these characteristics and in the process allows us to shed a more nuanced light on this transition phase, an often neglected task. The resulting policy recommendations emphasize the advantages of immediate action and show under what conditions optimal policy might differ from one sector to another. The model thus generates important and policy-relevant insights while seriously considering transition dynamics.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Tinbergen Institute Discussion Paper ; No. TI 2020-083/VI

Classification and Topics

• Classification: Wirtschaft ; Optimization Techniques; Programming Models; Dynamic Analysis ; Innovation; Research and Development; Technological Change; Intellectual Property Rights: General ; Nonrenewable Resources and Conservation: General ; Alternative Energy Sources ; Energy and the Macroeconomy ; Climate; Natural Disasters and Their Management; Global Warming ; Environmental Economics: Government Policy
• Subject: abatement ; DICE ; energy economics ; inertia ; innovation ; path dependence ; transition

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Grubb, Michael ; Lange, Rutger-Jan ; Cerkez, Nicolas ; Salas, Pablo ; Mercure, Jean-Francois ; Sognnaes, Ida
• Event: Veröffentlichung
• (who): Tinbergen Institute
• (where): Amsterdam and Rotterdam
• (when): 2020

Further information

• Handle: http://hdl.handle.net/10419/229703
• Last update: 10.03.2025, 11:43 AM CET