TY  - GEN
AB  - In this paper we develop an economic growth model that includes anthropogenic
climate change. We include a publicly funded research sector that creates new technologies
and simultaneously expands the productivities of existing technologies. The
environment is affected by R&D activities both negatively, through the increase of
output from productivity growth, as well as positively as new technologies are less
harmful for the environment. We find that there may exist two different steadystates
of the economy, depending on the amount of research spending: one with less
new technologies being developed and the other with more technologies. Thus, a
lock-in effect may arise that, however, can be overcome by raising R&D spending
sufficiently such that the steady-state becomes unique. We derive the combinations
of fiscal policy instruments for which that can be achieved and we study the implications
for the economy and for the environment. In particular, the double dividend
hypothesis may hold only under some specific conditions.
DA  - 2018
DO  - 10.4119/unibi/2916995
KW  - Climate change
KW  - doubly-differentiated R&D
KW  - double dividend
KW  - fiscal policy instruments
KW  - technology lock-in
LA  - eng
PY  - 2018
SN  - 2196-2723
SP  - 31-
TI  - Global warming and technical change: Multiple steady-states and policy options
UR  - https://nbn-resolving.org/urn:nbn:de:0070-pub-29169958
Y2  - 2024-11-22T04:06:37
ER  -