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Study of government policies for promotion of green technology in the framework of real business cycle model

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  • Stepanova Elena

    (Santa Anna School of Advanced Studies, Pisa, Italy)

Abstract

This paper analyzes possible impact of government reduction in market entry costs for firms that are using green technologies. Government may promote use of green technologies by facilitating market entry for such companies. Or government may impose restrictions to enter the market if firms are not using the green technology, which will result in increase of sunk costs of entering the market. We study cases of reduction and increase in market entry costs using Real Business Cycle model (RBC) with endogenous entry and different forms of market competition. We compare impact from supply shock in the form of reduction (or increase) in entry costs to standard form of supply shock, i. e. improvement in technology.

Suggested Citation

  • Stepanova Elena, 2013. "Study of government policies for promotion of green technology in the framework of real business cycle model," Review of Business and Economics Studies, CyberLeninka;Федеральное государственное образовательное бюджетное учреждение высшего профессионального образования «Финансовый университет при Правительстве Российской Федерации» (Финансовый университет), issue 1, pages 19-31.
  • Handle: RePEc:scn:031730:14460882
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