Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/171573 
Year of Publication: 
2010
Series/Report no.: 
Economics Working Paper Series No. 10/130
Publisher: 
ETH Zurich, CER-ETH - Center of Economic Research, Zurich
Abstract: 
Computable general equilibrium models simulate the reaction of industries on carbon taxes. Their results differ strongly on the assumption of the underlying technologies. This paper compares two models and emphasizes the differences between their approaches to technology. The first model is the CITE model, which is the first model with endogenous growth based on gains from specialization so that growth dynamics result from investment incentives. The second model is a model with exogenous growth of endowments, which is the basis for many other CGE models. The results show that the CITE model unveils dynamics that cannot be obtained with the model based on exogenous growth. Reactions are stronger in the CITE model and industries need more time to approach the new balanced growth path.
Subjects: 
Endogenous growth
gains from specialization
CGE models
energy policy
JEL: 
Q54
C63
O41
Q43
Q56
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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