Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/123236 
Year of Publication: 
2015
Series/Report no.: 
CESifo Working Paper No. 5596
Publisher: 
Center for Economic Studies and ifo Institute (CESifo), Munich
Abstract: 
The transition of a sector from a pollutant state to a clean one is studied. A green technology, subject to learning-by-doing, progressively replaces an old one. The notion of abatement cost in this dynamic context is fully characterized. The theoretical, dynamic optimization, perspective is linked to simple implementation rules. The practical “deployment” perspective allows to study sub-optimal trajectories. Moreover, the analysis of the launching date provides a definition of a dynamic abatement cost easy to use for evaluation of real-world policy options. The case of Fuel Cell Electric Vehicles offers an illustration of the proposed methodology.
Subjects: 
dynamic abatement costs
learning by doing
fuel cell electric vehicles
JEL: 
Q55
Q42
C61
Document Type: 
Working Paper
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