To Everything There Is a Season: Carbon Pricing, Research Subsidies, and the Transition to Fossil-Free Energy

Sammanfattning

We develop a climate policy model with directed technological change (DTC) in the energy sector. The model delivers both analytical and numerical results that give a clear understanding of the respective roles of research subsidies and emissions pricing. By contrast to existing models with DTC, ours is close in structure to recent integrated assessment models, leading to dramatically different results. Although clean-research subsidies are substantial initially, they subsequently decline whereas emissions taxes increase without bound. Furthermore, emissions taxes are far more important than research subsidies: in our baseline parameterization, a regulator unable to tax can only achieve 36% of potential benefits, whereas a regulator unable to subsidize can achieve 91% of potential benefits.

Nyckelord

directed technological change; knowledge spillovers; energy; climate change

Publicerad i

Journal of the Association of Environmental and Resource Economists
2019, volym: 6, nummer: 2, sidor: 135-175
Utgivare: UNIV CHICAGO PRESS

SLU författare

• Hart, Robert

  • Institutionen för ekonomi, Sveriges lantbruksuniversitet
    

Globala målen (SDG)

SDG7 Hållbar energi för alla
SDG13 Bekämpa klimatförändringarna

UKÄ forskningsämne

Nationalekonomi

Publikationens identifierare

• DOI: https://doi.org/10.1086/701805

Permanent länk till denna sida (URI)

https://res.slu.se/id/publ/98188