Quantifying distortions from pollution in a R&D endogenous growth model
In this note we study the distortions in an endogenous growth model developed by Grimaud and Tournemaine (2007), where new pieces of knowledge are produced in a R&D sector and used to reduce pollution emissions. Using this model along with a realistic calibration, we conclude that the economy strongly underinvests in R&D, such that the policy maker would need to implement a strong tax-subsidy scheme to correct it. We suggest that a subsidy to human capital can also decrease the gap between market and optimal allocations.
Volume (Year): 41 (2014)
Issue (Month): 1 Year 2014 (June)
|Contact details of provider:|| Web page: http://www.econ.uchile.cl/|
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Hartog,Joop & Maassen van den Brink,HenriÃ«tte (ed.), 2007. "Human Capital," Cambridge Books, Cambridge University Press, number 9780521873161, November.
- Grimaud, Andre & Tournemaine, Frederic, 2007.
"Why can an environmental policy tax promote growth through the channel of education?,"
Elsevier, vol. 62(1), pages 27-36, April.
- Grimaud, André & Tournemaine, Frédéric, 2006. "Why can an environmental policy tax promote growth through the channel of education?," IDEI Working Papers 676, Institut d'Économie Industrielle (IDEI), Toulouse.
- Alvarez-Pelaez, Maria J. & Groth, Christian, 2005. "Too little or too much R&D?," European Economic Review, Elsevier, vol. 49(2), pages 437-456, February.
- Maria J. Alvarez-Pelaez & Christian Groth, 2002. "Too little or too much R&D?," Discussion Papers 02-01, University of Copenhagen. Department of Economics.
- Volker Grossmann & Thomas M. Steger & Timo Trimborn, 2016. "Quantifying Optimal Growth Policy," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 18(3), pages 451-485, 06.
- Grossmann, Volker & Steger, Thomas M. & Trimborn, Timo, 2010. "Quantifying Optimal Growth Policy," IZA Discussion Papers 5007, Institute for the Study of Labor (IZA).
- Volker Grossmann & Thomas Steger & Timo Trimborn, 2010. "Quantifying Optimal Growth Policy," CESifo Working Paper Series 3092, CESifo Group Munich.
- Grossmann, Volker & Steger, Thomas M. & Trimborn, Timo, 2010. "Quantifying Optimal Growth Policy," Hannover Economic Papers (HEP) dp-440, Leibniz Universität Hannover, Wirtschaftswissenschaftliche Fakultät.
- Volker Grossmann & Thomas M. Steger & Timo Trimborn, 2010. "Quantifying Optimal Growth Policy," DEGIT Conference Papers c015_051, DEGIT, Dynamics, Economic Growth, and International Trade.
- Grossmann, Volker & Steger, Thomas M. & Trimborn, Timo, 2010. "Quantifying Optimal Growth Policy," FSES Working Papers 414, Faculty of Economics and Social Sciences, University of Freiburg/Fribourg Switzerland.
- Jones, Larry E & Manuelli, Rodolfo E & Rossi, Peter E, 1993. "Optimal Taxation in Models of Endogenous Growth," Journal of Political Economy, University of Chicago Press, vol. 101(3), pages 485-517, June.
- del Barrio-Castro, Tomas & Lopez-Bazo, Enrique & Serrano-Domingo, Guadalupe, 2002. "New evidence on international R&D spillovers, human capital and productivity in the OECD," Economics Letters, Elsevier, vol. 77(1), pages 41-45, September.
- Gerhard Glomm & B. Ravikumar, 1998. "Flat-Rate Taxes, Government Spending on Education, and Growth," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 1(1), pages 306-325, January.
- "Ana Balcão" "Reis" & "Tiago Neves" "Sequeira", 2007. "Human Capital and Overinvestment in R&D," Scandinavian Journal of Economics, Wiley Blackwell, vol. 109(3), pages 573-591, 09.
- 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.
- Stokey, Nancy L, 1998. "Are There Limits to Growth?," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 39(1), pages 1-31, February. Full references (including those not matched with items on IDEAS)
When requesting a correction, please mention this item's handle: RePEc:udc:esteco:v:41:y:2014:i:1:p:149-159. 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: (Verónica Kunze)
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.