The optimal climate policy portfolio when knowledge spills across sectors

Arbeitspapier

This paper studies the implications for climate policy of the interactions between environmental and knowledge externalities. Using a numerical analysis performed with the hybrid integrated assessment model WITCH, extended to include mutual spillovers between the energy and the non-energy sector, we show that the combination between environmental and knowledge externalities provides a strong rationale for implementing a portfolio of policies for both emissions reduction and the internalisation of knowledge externalities. Moreover, we show that implementing technology policy as a substitute for stabilisation policy is likely to increase global emissions.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: CESifo Working Paper ; No. 2988

Classification and Topics

• Classification: Wirtschaft ; Noncooperative Games ; Taxation and Subsidies: Externalities; Redistributive Effects; Environmental Taxes and Subsidies ; Renewable Resources and Conservation: Water ; Renewable Resources and Conservation: Government Policy ; Innovation and Invention: Processes and Incentives ; One, Two, and Multisector Growth Models ; Climate; Natural Disasters and Their Management; Global Warming
• Subject: technical change ; climate change ; development ; innovation ; spillovers ; Klimaschutz ; Policy-Mix ; Wissenstransfer ; Umwelttechnik ; Forschungs- und Technologiepolitik ; Technischer Fortschritt ; Branche ; Energiesparen ; Theorie

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Massetti, Emanuele ; Nicita, Lea
• Event: Veröffentlichung
• (who): Center for Economic Studies and ifo Institute (CESifo)
• (where): Munich
• (when): 2010

Further information

• Handle: http://hdl.handle.net/10419/38986
• Last update: 10.03.2025, 11:41 AM CET