IDEAS home Printed from
MyIDEAS: Log in (now much improved!) to save this article

Combining carbon tax and R&D subsidy for climate change mitigation

  • Lim, Jong-Soo
  • Kim, Yong-Gun
Registered author(s):

    R&D industry is introduced into a CGE model (KEI-Linkages) as a means to mimic the endogenous technological progress in the Korean economy. We found that providing across-the-board subsidy on R&D expenditure may lead to an increase in the carbon intensity, as well as the real GDP for the Korean economy. However, when R&D subsidies are combined with a carbon tax, real GDP can grow without increasing CO2 emissions. Carbon tax on top of R&D subsidy represses the growth of carbon intensive industries compared to the case of stand-alone R&D subsidy policy. Furthermore, carbon intensive industries reduce carbon intensity by way of fuel mix change to cope with a higher carbon tax rate to meet the national CO2 reduction target. The final outcome impinges on the industry structure of the economy. Therefore, a careful study of the industry structure of the economy is warranted to maximize the effectiveness of climate change policy-mix.

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

    File URL:
    Download Restriction: Full text for ScienceDirect subscribers only

    As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

    Article provided by Elsevier in its journal Energy Economics.

    Volume (Year): 34 (2012)
    Issue (Month): S3 ()
    Pages: S496-S502

    in new window

    Handle: RePEc:eee:eneeco:v:34:y:2012:i:s3:p:s496-s502
    Contact details of provider: Web page:

    No references listed on IDEAS
    You can help add them by filling out this form.

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:eee:eneeco:v:34:y:2012:i:s3:p:s496-s502. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Shamier, Wendy)

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.