Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/53284
Authors: 
Nicita, Lea
Carraro, Carlo
Massetti, Emanuele
Year of Publication: 
2009
Series/Report no.: 
Nota di lavoro // Fondazione Eni Enrico Mattei: Sustainable development 08.2009
Abstract: 
This paper analyses whether and how a climate policy designed to stabilize greenhouse gases in the atmosphere is likely to change the direction and pace of technical progress. The analysis is performed using an upgraded version of WITCH, a dynamic integrated regional model of the world economy. In this version, a non-energy R&D Sector, which enhances the productivity of the capital-labor aggregate, has been added to the energy R&D sector included in the original WITCH model. We find that, as a consequence of climate policy, R&D is re-directed towards energy knowledge. Nonetheless, total R&D investments decrease, due to a more than proportional contraction of non-energy R&D. Indeed, when non-energy and energy inputs are weakly substitutable, the overall contraction of the economic activity associated with a climate policy induces a decline in total R&D investments. However, enhanced investments in energy R&D and in the energy sector are found not to crowd-out investments in non-energy R&D.
Subjects: 
Technical Change
Climate Policy
Stabilization Cost
R&D Investments
JEL: 
C72
H23
Q25
Q28
Document Type: 
Working Paper

Files in This Item:
File
Size
301.42 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.