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Pollution-reducing and resource-saving technological progress

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  • Dagmar Nelissen
  • Till Requate

Abstract

We survey the theoretical literature on pollution-reducing and resource-saving technological progress, differentiating between microeconomic partial equilibrium models and endogenous growth models. The microeconomic models serve to investigate incentives to develop and adopt environmentally friendlier technologies under different policy tools, commitment strategies and market structures. Here price-based instruments usually outperform command and control policies. In most growth models a trade-off between growth rates and environmental quality occurs. Moreover, typically three market imperfections arise, market power for new products, R&D spillovers and pollution. These imperfections can be mitigated by subsidies on output and R&D effort, and taxes on emissions.

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Bibliographic Info

Article provided by Inderscience Enterprises Ltd in its journal Int. J. of Agricultural Resources, Governance and Ecology.

Volume (Year): 6 (2007)
Issue (Month): 1 ()
Pages: 5-44

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Handle: RePEc:ids:ijarge:v:6:y:2007:i:1:p:5-44

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Web page: http://www.inderscience.com/browse/index.php?journalID=1

Related research

Keywords: pollution reduction; technological progress; resource saving; environmental innovation; endogenous growth models; emission taxes; tradable permits; microeconomic models; growth rates; environmental quality; output subsidies; environmental pollution; agriculture.;

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Cited by:
  1. Coria, Jessica, 2008. "Taxes, Permits, and the Diffusions of a New Technology," Discussion Papers dp-08-26-efd, Resources For the Future.
  2. Coria, Jessica, 2009. "Environmental policy, fuel prices and the switching to natural gas in Santiago, Chile," Ecological Economics, Elsevier, vol. 68(11), pages 2877-2884, September.
  3. Arguedas, Carmen & van Soest, Daan P., 2009. "On reducing the windfall profits in environmental subsidy programs," Journal of Environmental Economics and Management, Elsevier, vol. 58(2), pages 192-205, September.

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