Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/146720
Authors: 
Neves Sequeira, Tiago
Ferreira-Lopes, Alexandra
Year of Publication: 
2014
Citation: 
[Journal:] Estudios de Economía [ISSN:] 0718-5286 [Volume:] 41 [Year:] 2014 [Issue:] 1 [Pages:] 149-159
Abstract: 
In this note we study the distortions in an endogenous growth model developed by Grimaud and Tournemaine (2007), where new pieces of knowledge are produced in a R&D sector and used to reduce pollution emissions. Using this model along with a realistic calibration, we conclude that the economy strongly underinvests in R&D, such that the policy maker would need to implement a strong tax-subsidy scheme to correct it. We suggest that a subsidy to human capital can also decrease the gap between market and optimal allocations.
Subjects: 
pollution
environmental tax
R&D
economic growth
subsidies
JEL: 
O13
O15
O31
O41
Q50
Document Type: 
Article

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