Climate change and "growth traps"

Климатические изменения и «ловушки роста»

Golub, Alexander (Голуб, Александр) ()
Additional contact information
Golub, Alexander (Голуб, Александр): The Russian Presidential Academy of National Economy and Public Administration

Working Papers from Russian Presidential Academy of National Economy and Public Administration

Abstract: Reliance of the Russian economy on carbon dependent sectors may induce a long-term stagnation and convergence of the economy into the development trap. A theoretical model of economic growth model presents the Russian economy as a combination of two sectors: dominating carbon-dependent industries and emerging knowledge-based sectors. Exposure of carbon-dependent industries to the emerging global and regional climate policies and to climate change itself determine elevated investment risks and high risk-adjusted cost of capital. The reliance of Russia on resource and energy-intensive sectors will increase investment risks and the cost of capital for the Russian economy. For the theoretical analysis, we apply the Ramsey economic growth model with a convex-concave production function. For the analysis of investment risks, we use the real options analysis.

Keywords: development trap; investment risks; climate policy: concave-convex production function (search for similar items in EconPapers)
Pages: 22 pages
Date: 2020-03
New Economics Papers: this item is included in nep-cis, nep-ene, nep-env, nep-gen and nep-gro
References: Add references at CitEc
Citations:

Downloads: (external link)
https://repec.ranepa.ru/rnp/wpaper/032002.pdf
Our link check indicates that this URL is bad, the error code is: 404 Not Found

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:rnp:wpaper:032002

Access Statistics for this paper

More papers in Working Papers from Russian Presidential Academy of National Economy and Public Administration Contact information at EDIRC.
Bibliographic data for series maintained by RANEPA maintainer ().