Modeling the Dynamics of the Transition to a Green Economy

Stefan Mittnik, Willi Semmler, Mika Kato () and Daniel Samaan ()
Additional contact information
Mika Kato: Howard University
Daniel Samaan: New School for Social Research

A chapter in Dynamic Optimization in Environmental Economics, 2014, pp 87-109 from Springer

Abstract: Abstract Recent academic work argues for a greater urgency to implement effective climate policies to combat global warming. Concrete policy proposals for reducing CO2 emissions have been developed by the IPCC. Yet, it has not been sufficiently explored to what extent mitigation policies, such as cap-and-trade, carbon tax or the phasing in of green technology, will entail structural change in an economy. Here, we explore the transition to a green economy using a growth model with structural change resulting from three types of policies: (1) shifting preferences, (2) taxing high-carbon intensive goods, or (3) imposing a carbon tax while subsidizing low-carbon intensive economic activities. We also will consider a strategy of imposing a carbon tax and subsidizing labor cost. Our focus will be on two questions: What impact do the policies under consideration have on employment and output, and whether resulting growth paths will be stable. We also indicate how the effects of carbon policies can be assessed empirically.

Keywords: Climate Policy; Real Interest Rate; Intermediate Good; Final Demand; Carbon Intensity (search for similar items in EconPapers)
Date: 2014
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

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:spr:dymchp:978-3-642-54086-8_4

Ordering information: This item can be ordered from
http://www.springer.com/9783642540868

DOI: 10.1007/978-3-642-54086-8_4

Access Statistics for this chapter

More chapters in Dynamic Modeling and Econometrics in Economics and Finance from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().