Impact assessment of emissions stabilization scenarios with and without induced technological change
AbstractThe main aim of this paper is to investigate quantitatively the economic impacts of emissions stabilization scenarios with and without the inclusion of induced technological change (ITC). Improved technological innovations are triggered by increased R&D expenditures that advance energy efficiencies. Model results show that induced technological changes due to increased investment in R&D reduce compliance costs. Although R&D expenditures compete with other investment expenditures, we find that increased R&D expenditures improve energy efficiency which substantially lowers abatement costs. Without the inclusion of induced technological change, emissions targets are primarily reached by declines in production, resulting in overall welfare reductions. With the inclusion of induced technological changes, emissions mitigations can result in fewer production and GDP drawbacks.
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Bibliographic InfoArticle provided by Elsevier in its journal Energy Policy.
Volume (Year): 35 (2007)
Issue (Month): 11 (November)
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Web page: http://www.elsevier.com/locate/enpol
Other versions of this item:
- Claudia Kemfert & Truong P. Truong, 2005. "Impact Assessment of Emissions Stabilization Scenarios with and without Induced Technological Change," Discussion Papers of DIW Berlin 530, DIW Berlin, German Institute for Economic Research.
- C6 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling
- O3 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights
- Q4 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy
- D5 - Microeconomics - - General Equilibrium and Disequilibrium
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