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The Environment, Trade and Innovation with Heterogeneous Firms: A Numerical Analysis

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  • Cui, Jingbo
  • Ji, Yongjie

Abstract

We employ a two-sector heterogeneous firms model in the presence of endogenous innovation and environmental constraints. We perform simple numerical simulations concerning the implication of a stringent environmental policy and trade cost differences between dirty and clean inputs. Our objective is to highlight the effects of these policy proposals on the process innovation, trade pattern, and productivity dynamics.

Suggested Citation

  • Cui, Jingbo & Ji, Yongjie, 2011. "The Environment, Trade and Innovation with Heterogeneous Firms: A Numerical Analysis," 2011 Annual Meeting, July 24-26, 2011, Pittsburgh, Pennsylvania 103478, Agricultural and Applied Economics Association.
  • Handle: RePEc:ags:aaea11:103478
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    File URL: http://purl.umn.edu/103478
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    References listed on IDEAS

    as
    1. Daron Acemoglu & Philippe Aghion & Leonardo Bursztyn & David Hemous, 2012. "The Environment and Directed Technical Change," American Economic Review, American Economic Association, vol. 102(1), pages 131-166, February.
    2. Mikhail Golosov & John Hassler & Per Krusell & Aleh Tsyvinski, 2014. "Optimal Taxes on Fossil Fuel in General Equilibrium," Econometrica, Econometric Society, vol. 82(1), pages 41-88, January.
    3. Zhe Li & Shouyong Shi, 2010. "Emission Tax or Standard? The Role of Productivity Dispersion," Working Papers tecipa-409, University of Toronto, Department of Economics.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Cap and Trade; Heterogeneous Firms; Process Innovation; Trade Pattern; Environmental Economics and Policy; International Relations/Trade; Research and Development/Tech Change/Emerging Technologies; F18; Q55; Q56; C63;

    JEL classification:

    • F18 - International Economics - - Trade - - - Trade and Environment
    • Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • C63 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computational Techniques

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