IDEAS home Printed from https://ideas.repec.org/p/fem/femwpa/2003.11.html
   My bibliography  Save this paper

Learning by Doing vs Learning by Researching in a Model of Climate Change Policy Analysis

Author

Listed:
  • Marzio Galeotti

    (Università di Milano and Fondazione Eni Enrico Mattei)

  • Sergio Vergalli

    (Università di Padova and Fondazione Eni Enrico Mattei)

  • Efrem Castelnuovo

    (Università Bocconi and Fondazione Eni Enrico Mattei)

  • Gretel Gambarelli

    (Fondazione Eni Enrico Mattei)

Abstract

Many predictions and conclusions in climate change literature have been made on the basis of theoretical analyses and quantitative models that assume exogenous technological change. One may wonder if those policy prescriptions hold in the more realistic case of endogenously evolving technologies. In previous work we modified a popular integrated assessment model to allow for an explicit role of the stock of knowledge which accumulates through R&D investment. In our formulation knowledge affects the output production technology and the emission-output ratio. In this paper we make progress in our efforts aimed to model the process of technological change. In keeping with recent theories of endogenous growth, we specify two ways in which knowledge accumulates: via a deliberate, optimally selected R&D decision or via experience, giving rise to Learning by Doing. We simulate the model under the two versions of endogenous technical change and look at the dynamics of a number of relevant variables.

Suggested Citation

  • Marzio Galeotti & Sergio Vergalli & Efrem Castelnuovo & Gretel Gambarelli, 2003. "Learning by Doing vs Learning by Researching in a Model of Climate Change Policy Analysis," Working Papers 2003.11, Fondazione Eni Enrico Mattei.
  • Handle: RePEc:fem:femwpa:2003.11
    as

    Download full text from publisher

    File URL: http://www.feem.it/userfiles/attach/Publication/NDL2003/NDL2003-011.pdf
    Download Restriction: no

    Other versions of this item:

    References listed on IDEAS

    as
    1. Popp, David, 2004. "ENTICE: endogenous technological change in the DICE model of global warming," Journal of Environmental Economics and Management, Elsevier, vol. 48(1), pages 742-768, July.
    2. Castelnuovo, Efrem & Galeotti, Marzio & Gambarelli, Gretel & Vergalli, Sergio, 2005. "Learning-by-Doing vs. Learning by Researching in a model of climate change policy analysis," Ecological Economics, Elsevier, vol. 54(2-3), pages 261-276, August.
    3. Francesco Bosello & Barbara Buchner & Carlo Carraro, 2003. "Equity, Development, and Climate Change Control," Journal of the European Economic Association, MIT Press, vol. 1(2-3), pages 601-611, 04/05.
    4. Sabine Messner, 1997. "Endogenized technological learning in an energy systems model," Journal of Evolutionary Economics, Springer, vol. 7(3), pages 291-313.
    5. Anderson, Dennis & Bird, Catherine D, 1992. "Carbon Accumulations and Technical Progress--A Simulation Study of Costs," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 54(1), pages 1-29, February.
    6. Goulder, Lawrence H. & Mathai, Koshy, 2000. "Optimal CO2 Abatement in the Presence of Induced Technological Change," Journal of Environmental Economics and Management, Elsevier, vol. 39(1), pages 1-38, January.
    7. Paolo Buonanno & Carlo Carraro & Efrem Castelnuovo & Marzio Galeotti, 2001. "Emission Trading Restrictions with Endogenous Technological Change," International Environmental Agreements: Politics, Law and Economics, Springer, vol. 1(3), pages 379-395, July.
    8. Buonanno, Paolo & Carraro, Carlo & Galeotti, Marzio, 2003. "Endogenous induced technical change and the costs of Kyoto," Resource and Energy Economics, Elsevier, vol. 25(1), pages 11-34, February.
    Full references (including those not matched with items on IDEAS)

    Citations

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


    Cited by:

    1. Nicola Cantore & Emilio Padilla, 2007. "Equity and CO2 Emissions Distribution in Climate Change Integrated Assessment," Working Papers wpdea0705, Department of Applied Economics at Universitat Autonoma of Barcelona.
    2. Lehmann, Paul, 2013. "Supplementing an emissions tax by a feed-in tariff for renewable electricity to address learning spillovers," Energy Policy, Elsevier, vol. 61(C), pages 635-641.
    3. Tilmann Rave & Ursula Triebswetter & Johann Wackerbauer, 2013. "Koordination von Innovations-, Energie- und Umweltpolitik," ifo Forschungsberichte, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, number 61, October.
    4. repec:eee:appene:v:202:y:2017:i:c:p:447-458 is not listed on IDEAS
    5. Gillingham, Kenneth & Newell, Richard G. & Pizer, William A., 2008. "Modeling endogenous technological change for climate policy analysis," Energy Economics, Elsevier, vol. 30(6), pages 2734-2753, November.
    6. Cantore, Nicola & Padilla, Emilio, 2010. "Equality and CO2 emissions distribution in climate change integrated assessment modelling," Energy, Elsevier, vol. 35(1), pages 298-313.
    7. Castelnuovo, Efrem & Galeotti, Marzio & Gambarelli, Gretel & Vergalli, Sergio, 2005. "Learning-by-Doing vs. Learning by Researching in a model of climate change policy analysis," Ecological Economics, Elsevier, vol. 54(2-3), pages 261-276, August.
    8. Grover, David, 2013. "The ‘advancedness’ of knowledge in pollution-saving technological change with a qualitative application to SO2 cap and trade," Ecological Economics, Elsevier, vol. 89(C), pages 123-134.
    9. Verdolini, Elena & Galeotti, Marzio, 2011. "At home and abroad: An empirical analysis of innovation and diffusion in energy technologies," Journal of Environmental Economics and Management, Elsevier, vol. 61(2), pages 119-134, March.
    10. Valentina Bosetti, Carlo Carraro and Marzio Galeotti, 2006. "The Dynamics of Carbon and Energy Intensity in a Model of Endogenous Technical Change," The Energy Journal, International Association for Energy Economics, vol. 0(Special I), pages 191-206.
    11. Berglund, Christer & Soderholm, Patrik, 2006. "Modeling technical change in energy system analysis: analyzing the introduction of learning-by-doing in bottom-up energy models," Energy Policy, Elsevier, vol. 34(12), pages 1344-1356, August.
    12. Sylvie Geisendorf, 2016. "The impact of personal beliefs on climate change: the “battle of perspectives” revisited," Journal of Evolutionary Economics, Springer, vol. 26(3), pages 551-580, July.
    13. Niall Farrell & Seán Lyons, 2016. "Equity impacts of energy and climate policy: who is shouldering the burden?," Wiley Interdisciplinary Reviews: Energy and Environment, Wiley Blackwell, vol. 5(5), pages 492-509, September.
    14. Shunli Wang & Henri L.F. de Groot & Peter Nijkamp & Erik T. Verhoef, 2009. "Global and Regional Impacts of the Clean Development Mechanism," Tinbergen Institute Discussion Papers 09-045/3, Tinbergen Institute.
    15. David Grover, 2012. "The �advancedness� of knowledge in pollutionsaving technological change with a qualitative application to SO2 cap and trade," GRI Working Papers 100, Grantham Research Institute on Climate Change and the Environment.
    16. Marzio Galeotti & Carlo Carraro, 2004. "Does Endogenous Technical Change Make a Difference in Climate Policy Analysis? A Robustness Exercise with the FEEM-RICE Model," Working Papers 2004.152, Fondazione Eni Enrico Mattei.
    17. Martin Junginger & Wilfried van Sark & André Faaij (ed.), 2010. "Technological Learning in the Energy Sector," Books, Edward Elgar Publishing, number 13741.
    18. Kahouli-Brahmi, Sondes, 2008. "Technological learning in energy-environment-economy modelling: A survey," Energy Policy, Elsevier, vol. 36(1), pages 138-162, January.
    19. Eveline van Leeuwen & Peter Nijkamp & Piet Rietveld, 2009. "Climate Change: From Global Concern To Regional Challenge," Romanian Journal of Regional Science, Romanian Regional Science Association, vol. 3(2), pages 18-38, DECEMBER.

    More about this item

    Keywords

    Climate Policy; Environmental Modeling; Integrated Assessment; Technical Change;

    JEL classification:

    • H0 - Public Economics - - General
    • H2 - Public Economics - - Taxation, Subsidies, and Revenue
    • H3 - Public Economics - - Fiscal Policies and Behavior of Economic Agents

    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:fem:femwpa:2003.11. 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: (barbara racah). General contact details of provider: http://edirc.repec.org/data/feemmit.html .

    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 CitEc recognized a reference but did not link an item in RePEc 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 RePEc Author Service 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.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.