Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/119621
Authors: 
Gerlagh, Reyer
Hofkes, Marjan W.
Year of Publication: 
2002
Series/Report no.: 
Nota di Lavoro, Fondazione Eni Enrico Mattei 12.2002
Abstract: 
In this paper we develop a simple endogenous growth model with two competing production technologies and learning spillover effects between firms that use the same technology. Investments are directed to the technology with highest current and expected returns. Since current investments increase future returns through learning, the economy will usually lock in, that is specialise in one of the two technologies. In case the economy has selected a relative polluting technology, sustainable growth requires a transition towards the clean technology. We analyse the scope for (environmental) policies that induce such a transition.
Subjects: 
Endogenous growth
lock-in
transition
convergent expectations
JEL: 
O41
Document Type: 
Working Paper

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