Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/171669
Authors: 
Bretschger, Lucas
Lechthaler, Filippo
Rausch, Sebastian
Zhang, Lin
Year of Publication: 
2015
Series/Report no.: 
Economics Working Paper Series 15/226
Abstract: 
This paper examines the effects of knowledge diffusion on growth and costs of climate policy. We develop a general equilibrium model with endogenous growth which represents knowledge diffusion between sectors and regions. Knowledge diffusion depends on accessibility and absorptive capacity which we estimate econometrically using patent and citation data. Knowledge diffusion leads to a “greening” of economies boosting productivity of “clean” carbon-extensive sectors. Knowledge diffusion lowers the costs of global climate policy by about 90% for emerging countries (China) and 20% for developed regions (Europe and USA), depending on the substitutability between different knowledge types.
Subjects: 
Technological Change: Choices and Consequences
Environment and Growth
Technological Innovation
Computable General Equilibrium Models
JEL: 
O33
O44
Q55
C68
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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