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The non-rivalry of data, directed technical change and the environment: A theoretical study incorporating data as a production factor

Jun Yang, Dingjian Yang and Jixin Cheng

Economic Analysis and Policy, 2024, vol. 82, issue C, 417-448

Abstract: With the evolution of digital technology, data is considered a new input factor. To investigate the impact of the degree of application and non-rivalry of data on technical change and the environment, we introduce data as a production factor into the production function and develop a two-sector directed technical change model. More importantly, we introduce non-rivalry in data use, enabling its use across sectors. The relevant results are threefold. (1) Data alone cannot avoid environmental disaster; what is worse, the application of data will accelerate environmental degradation. (2) Only in combination with environmental regulations can data play a positive role. In such case, the application of data will accelerate the rise of environmental quality. (3) Conversely, the non-rivalry has a positive effect without environmental regulations while a negative effect with environmental regulations.

Keywords: Data factor; Directed technical change; Non-rivalry; Environmental regulation (search for similar items in EconPapers)
Date: 2024
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecanpo:v:82:y:2024:i:c:p:417-448

DOI: 10.1016/j.eap.2024.03.020

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