Environmental Policy and the Direction of Technical Change

Mads Greaker, Tom-Reiel Heggedal and Knut Einar Rosendahl

No 09-2017, Working Paper Series from Norwegian University of Life Sciences, School of Economics and Business

Abstract: Should governmentsdirectR&Dfrom"dirty"into"clean"technologies?Howim- portantisthiscomparedtocarbonpricing?Weinquireintothis,introducingtwo noveltiescomparedtorecentliterature.WeintroducedecreasingreturnstoR&D,and allowfuturecarbontaxestoin‡uencecurrentR&Ddecisions.Ourresultssuggestthat governmentsshouldprioritizecleanR&D.Dealingwithmajorenvironmentalproblems requires R&Dtoshifttocleantechnology.However,whenmostresearchersworkwith clean technology,bothproductivityspilloversandfuturerisksofbeingreplacedin- crease. Consequently,thewedgebetweenprivateandsocialvalueofaninnovationis largest forcleantechnologies.

Keywords: environment; directedtechnologicalchange; innovationpolicy (search for similar items in EconPapers)
JEL-codes: O30 O31 O33 (search for similar items in EconPapers)
Pages: 37 pages
Date: 2017-12-07
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Citations: View citations in EconPapers (2)

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Journal Article: Environmental Policy and the Direction of Technical Change (2018)
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