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- W4324134477 abstract "Abstract I develop a directed technical change model of economic growth and energy efficiency in order to study the impact of climate change mitigation policies on energy use. I show that the standard Cobb–Douglas production function used in the environmental macroeconomics literature overstates the reduction in cumulative energy use that can be achieved with a given path of energy taxes. I also show that, in the model, the government combines energy taxes with research and development (R&D) policy that favors output-increasing technology—rather than energy efficiency technology—to maximize welfare subject to a constraint on cumulative energy use. In addition, I study energy use dynamics following sudden improvements in energy efficiency. Exogenous shocks that increase energy efficiency also decrease the incentive for subsequent energy efficiency R&D and increase long-run energy use relative to a world without the original shock. Subsidies for energy efficiency R&D, however, permanently alter R&D incentives and decrease long-run energy use." @default.
- W4324134477 created "2023-03-15" @default.
- W4324134477 creator A5038857531 @default.
- W4324134477 date "2023-03-15" @default.
- W4324134477 modified "2023-10-04" @default.
- W4324134477 title "Energy Efficiency and Directed Technical Change: Implications for Climate Change Mitigation" @default.
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- W4324134477 doi "https://doi.org/10.1093/restud/rdad001" @default.
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