On general versus emission saving R&D support
AbstractWe analyse welfare effects of supporting general versus emission saving technological development when carbon emissions are regulated by a carbon tax. We use a computable general equilibrium model with induced technological change (ITC). ITC is driven by two separate, economically motivated research and development (R&D) activities, one general and one emission saving specified as carbon capture and storage. We study public revenue neutral policy alternatives targeted towards general R&D and emission saving R&D. Support to general R&D is the welfare superior, independent of the level of international carbon price. However, the welfare gap between the two R&D policy alternatives is reduced if the carbon price increases.
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Bibliographic InfoPaper provided by Research Department of Statistics Norway in its series Discussion Papers with number 584.
Date of creation: May 2009
Date of revision:
Applied general equilibrium; Endogenous growth; Research and Development; Directed technological change; Carbon policy;
Find related papers by JEL classification:
- C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models
- E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy
- H32 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Firm
- O38 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Government Policy
- O41 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models
This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-06-03 (All new papers)
- NEP-ENE-2009-06-03 (Energy Economics)
- NEP-ENV-2009-06-03 (Environmental Economics)
- NEP-INO-2009-06-03 (Innovation)
- NEP-IPR-2009-06-03 (Intellectual Property Rights)
- NEP-MIC-2009-06-03 (Microeconomics)
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