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Endogenous structural change and climate targets

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Author Info
Renaud Crassous (CIRED - Centre international de recherche sur l'environnement et le développement - CIRAD : UMR56 - CNRS : UMR8568 - Ecole des Hautes Etudes en Sciences Sociales - Ecole Nationale des Ponts et Chaussées - Ecole Nationale du Génie Rural des Eaux et des Forêts, ENGREF - Ecole Nationale du Génie Rural, des Eaux et des Forêts - Ministère de l'agriculture)
Jean-Charles Hourcade (CIRED - Centre international de recherche sur l'environnement et le développement - CIRAD : UMR56 - CNRS : UMR8568 - Ecole des Hautes Etudes en Sciences Sociales - Ecole Nationale des Ponts et Chaussées - Ecole Nationale du Génie Rural des Eaux et des Forêts)
Olivier Sassi (CIRED - Centre international de recherche sur l'environnement et le développement - CIRAD : UMR56 - CNRS : UMR8568 - Ecole des Hautes Etudes en Sciences Sociales - Ecole Nationale des Ponts et Chaussées - Ecole Nationale du Génie Rural des Eaux et des Forêts, ENPC - Ecole Nationale des Ponts et Chaussées - Ecole Nationale des Ponts et Chaussées)

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Abstract

This paper envisages endogenous technical change as resulting from the interplay between the economic growth engine, consumption, technology and localization patterns. We perform numerical simulations with the recursive dynamic general equilibrium model IMACLIM-R to study how modeling induced technical change affects costs of CO2 stabilization. IMACLIM-R incorporates innovative specifications about final consumption of transportation and energy to represent critical stylized facts such as rebound effects and demand induction by infrastructures and equipments. Doing so brings to light how induced technical change may not only lower stabilization costs thanks to pure technological progress, but also triggers induction of final demand - effects critical to both the level of the carbon tax and the costs of policy given a specific stabilization target. Finally, we study the sensitivity of total stabilization costs to various parameters including both technical assumptions as accelerated turnover of equipments and non-energy choices as alternative infrastructure policies.

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Paper provided by HAL in its series Post-Print with number halshs-00009335_v1.

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Date of creation: Jan 2006
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Publication status: Published, The Energy Journal, 2006
Handle: RePEc:hal:journl:halshs-00009335_v1

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Related research
Keywords: induced technical change; structural change; climate policy; carbon tax; transportation; infrastructures;

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Hourcade, Jean-Charles, 1993. "Modelling long-run scenarios : Methodology lessons from a prospective study on a low CO2 intensive country," Energy Policy, Elsevier, vol. 21(3), pages 309-326, March. [Downloadable!] (restricted)
  2. David G. Blanchflower & Andrew J. Oswald, 1990. "The Wage Curve," NBER Working Papers 3181, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  3. Jean-Charles Hourcade & Philippe Ambrosi & Stéphane Hallegatte & Franck Lecocq & Patrice Dumas & Minh Ha-Duong, 2003. "Optimal control models and elicitation of attitudes towards climate damages," Post-Print halshs-00000966_v1, HAL. [Downloadable!]
  4. Jean-Charles Hourcade & Frédéric Ghersi & Patrick Criqui, 2003. "Viable Responses to the equity-responsability dilemna : a consequentialist view," Working Papers halshs-00000965_v1, HAL. [Downloadable!]
  5. Franck Lecocq & Jean-Charles Hourcade & Minh Ha-Duong, 1998. "Decision making under uncertainty and inertia constraints: sectoral implications of the when flexibility," Post-Print halshs-00002458_v1, HAL. [Downloadable!]
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  6. Smulders, Sjak & de Nooij, Michiel, 2003. "The impact of energy conservation on technology and economic growth," Resource and Energy Economics, Elsevier, vol. 25(1), pages 59-79, February. [Downloadable!] (restricted)
  7. Blanchflower, David G & Oswald, Andrew J, 1995. "An Introduction to the Wage Curve," Journal of Economic Perspectives, American Economic Association, vol. 9(3), pages 153-67, Summer. [Downloadable!] (restricted)
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. François Gusdorf & Stéphane Hallegatte, 2007. "Compact or Spread-Out Cities: Urban Planning, Taxation, and the Vulnerability to Transportation Shocks," Working Papers 2007.17, Fondazione Eni Enrico Mattei. [Downloadable!]
    Other versions:
  2. Sandrine Mathy & Céline Guivarch, 2009. "What if energy decoupling of emerging economies were not so spontaneous? An illustrative example on India," Post-Print halshs-00366274_v1, HAL. [Downloadable!]
  3. Sandrine Mathy & Céline Guivarch, 2009. "Climate policies : what if emerging country baseline were not so optimistic? – a case study related to India," Working Papers halshs-00366276_v1, HAL. [Downloadable!]
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