Does Endogenous Technical Change Make a Difference in Climate Policy Analysis? A Robustness Exercise with the Feem-Rice Model
49 Pages Posted: 14 Jan 2005
Date Written: December 2004
Abstract
Technical change is generally considered the key to the solution of environmental problems, in particular global phenomena like climate change. Scientists differ in their views on the thaumaturgic virtues of technical change. There are those who are confident that pollution-free technologies will materialize at some time in the future and will prevent humans from suffering the catastrophic consequences of climate change. Others believe that there are inexpensive technologies already available and argue the case for no-regret adoption policies (e.g. subsidies). Others again believe that the process of technological change responds to economic stimuli. These economic incentives to technological innovation are provided not only by forces that are endogenous to the economic system, but also by suitably designed environmental and innovation policies. In this paper, we consider and translate into analytical counterparts these different views of technical change. We then study alternative formulations of technical change and, with the help of a computerized climate-economy model, carry out a number of optimization runs in order to assess what type of technical change plays a role (assuming it does) in the evaluation of the impact of climate change and of the policies designed to cope with it.
Keywords: Climate policy, Environmental modeling, Integrated assessment, Technical change
JEL Classification: H0, H2, H3
Suggested Citation: Suggested Citation
Do you have negative results from your research you’d like to share?
Recommended Papers
-
Endogenous Induced Technical Change and the Costs of Kyoto
By Marzio Galeotti, Paolo Buonanno, ...
-
Simulating Coalitionally Stable Burden Sharing Agreements for the Climate Change Problem
By Johan Eyckmans and Henry Tulkens
-
Simulating with Rice Coalitionally Stable Burden Sharing Agreements for the Climate Change Problem
By Henry Tulkens and Johan Eyckmans
-
The Kyoto Protocol: An Economic and Game Theoretic Interpretation
By Parkash Chander, Henry Tulkens, ...
-
Endogenous Formation of Economic Coalitions: A Survey on the Partition Function Approach
-
U.S. Rejection of the Kyoto Protocol: The Impact on Compliance Costs and Co2 Emissions
By Alan S. Manne and Richard G. Richels
-
Back to Kyoto? Us Participation and the Linkage between R&D and Climate Cooperation
By Barbara K. Buchner, Carlo Carraro, ...
-
Back to Kyoto? Us Participation and the Linkage between R&D and Climate Cooperation
By Carlo Carraro, Barbara K. Buchner, ...
-
By Carlo Carraro and Carmen Marchiori