IDEAS home Printed from https://ideas.repec.org/a/oup/oxecpp/v65y2013i2p394-416.html
   My bibliography  Save this article

On the effect of technological progress on pollution: an overlooked distortion in endogenous growth

Author

Listed:
  • Alexandra Ferreira-Lopes
  • Tiago Neves Sequeira
  • Catarina Roseta-Palma

Abstract

We derive a model of endogenous growth with physical capital, human capital and technological progress through quality-ladders. We introduce welfare-decreasing pollution in the model, which can be reduced through the development of cleaner technologies. From the quantitative analysis of the model, we show clear evidence that the externality from technological progress to pollution considered in this model is sufficiently strong to induce underinvestment in R&D as an outcome of the decentralized equilibrium. An important policy implication of the main result of this article is that it reinforces the case for R&D subsidies. Copyright 2013 Oxford University Press 2012 All rights reserved, Oxford University Press.

Suggested Citation

  • Alexandra Ferreira-Lopes & Tiago Neves Sequeira & Catarina Roseta-Palma, 2013. "On the effect of technological progress on pollution: an overlooked distortion in endogenous growth," Oxford Economic Papers, Oxford University Press, vol. 65(2), pages 394-416, April.
    • Handle: RePEc:oup:oxecpp:v:65:y:2013:i:2:p:394-416
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1093/oep/gps019
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Tiago Neves Sequeira & Alexandra Ferreira-Lopes, 2014. "Quantifying distortions from pollution in a R&D endogenous growth model," Estudios de Economia, University of Chile, Department of Economics, vol. 41(1 Year 20), pages 149-159, June.
    2. Tiago Sequeira & Marcelo Santos, 2018. "Education and Energy Intensity: Simple Economic Modelling and Preliminary Empirical Results," Sustainability, MDPI, vol. 10(8), pages 1-17, July.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:oup:oxecpp:v:65:y:2013:i:2:p:394-416. See general information about how to correct material in RePEc.

    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.

    We have no bibliographic references for this item. You can help adding them by using 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Oxford University Press (email available below). General contact details of provider: https://academic.oup.com/oep .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.