Transition to Clean Technology

Daron Acemoglu, Ufuk Akcigit, Douglas Hanley and William Kerr

Journal of Political Economy, 2016, vol. 124, issue 1, 52 - 104

Abstract: We develop an endogenous growth model in which clean and dirty technologies compete in production. Research can be directed to either technology. If dirty technologies are more advanced, the transition to clean technology can be difficult. Carbon taxes and research subsidies may encourage production and innovation in clean technologies, though the transition will typically be slow. We estimate the model using microdata from the US energy sector. We then characterize the optimal policy path that heavily relies on both subsidies and taxes. Finally, we evaluate various alternative policies. Relying only on carbon taxes or delaying intervention has significant welfare costs.

Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (354)

Downloads: (external link)
http://dx.doi.org/10.1086/684511 (application/pdf)
http://dx.doi.org/10.1086/684511 (text/html)
Access to the online full text or PDF requires a subscription.

Related works:
Working Paper: Transition to clean technology (2015)
Working Paper: Transition to Clean Technology (2014)
Working Paper: Transition to Clean Technology (2014)
Working Paper: Transition to Clean Technology (2014)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ucp:jpolec:doi:10.1086/684511

Access Statistics for this article

More articles in Journal of Political Economy from University of Chicago Press
Bibliographic data for series maintained by Journals Division ().