Carbon Pricing, Technology Transition, and Skill-Based Development

Kirill Borissov, Lucas Bretschger and Alexandra Vinogradova

No 18/285, CER-ETH Economics working paper series from CER-ETH - Center of Economic Research (CER-ETH) at ETH Zurich

Abstract: We analyze the impact of carbon prices on human capital accumulation, sectoral change, and economic growth. In our framework output is produced with dirty and/or clean technologies using skilled and unskilled labor as inputs. Carbon policy affects technology selection which transmits incentives for human capital formation. We show that a temporary policy may be sufficient for a transition to a clean economy and that such a policy also stimulates economic growth. Moreover, in the presence of inter-country knowledge spillovers, a carbon policy in the North helps human capital formation in the South and induces South’s transition to the clean steady state.

Keywords: Carbon pricing; education; clean and dirty technologies; temporary policies (search for similar items in EconPapers)
JEL-codes: O41 O47 Q43 Q56 (search for similar items in EconPapers)
Pages: 30 pages
Date: 2018-01
New Economics Papers: this item is included in nep-ene, nep-env and nep-gro
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Related works:
Journal Article: Carbon pricing, technology transition, and skill-based development (2019)
Working Paper: Carbon Pricing, Technology Transition, and Skill-Based Development (2018)
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