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Carbon pricing, technology transition, and skill-based development

Kirill Borissov (), Alexandra Brausmann and Lucas Bretschger
Authors registered in the RePEc Author Service: Alexandra Brausmann Vinogradova

European Economic Review, 2019, vol. 118, issue C, 252-269

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)
Date: 2019
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Related works:
Working Paper: Carbon Pricing, Technology Transition, and Skill-Based Development (2018) Downloads
Working Paper: Carbon Pricing, Technology Transition, and Skill-Based Development (2018) Downloads
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Persistent link: https://EconPapers.repec.org/RePEc:eee:eecrev:v:118:y:2019:i:c:p:252-269

DOI: 10.1016/j.euroecorev.2019.05.011

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European Economic Review is currently edited by T.S. Eicher, A. Imrohoroglu, E. Leeper, J. Oechssler and M. Pesendorfer

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