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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.

Suggested Citation

  • Dagmar Nelissen & Till Requate, 2007. "Pollution-reducing and resource-saving technological progress," International Journal of Agricultural Resources, Governance and Ecology, Inderscience Enterprises Ltd, vol. 6(1), pages 5-44.
    • Handle: RePEc:ids:ijarge:v:6:y:2007:i:1:p:5-44
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    Cited by:

    1. Coria, Jessica, 2009. "Taxes, permits, and the diffusion of a new technology," Resource and Energy Economics, Elsevier, vol. 31(4), pages 249-271, November.
    2. Wang, Xu & Zhang, Xiao-Bing & Zhu, Lei, 2019. "Imperfect market, emissions trading scheme, and technology adoption: A case study of an energy-intensive sector," Energy Economics, Elsevier, vol. 81(C), pages 142-158.
    3. Daan P. van Soest & Herman R.J. Vollebergh, 2011. "Energy Investment Behaviour: Firm Heterogeneity and Subsidy Design," Chapters, in: Raymond J.G.M. Florax & Henri L.F. de Groot & Peter Mulder (ed.), Improving Energy Efficiency through Technology, chapter 9, Edward Elgar Publishing.
    4. 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.
    5. 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.

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