 Can technological innovation help China take on its climate responsibility? An intertemporal general equilibrium analysisWei Jin Energy Policy, 2012, vol. 49, issue C, 629-641 Abstract: This paper examines the effectiveness of China’s indigenous R&D and technological innovation to curb its carbon emissions. The mechanism of endogenous technical change (TC) is incorporated an intertemporal computable general equilibrium (CGE) model. R&D investments and knowledge creations are modeled as the endogenous behaviors of private firms. The accumulated stocks of knowledge are applied in the production process to affect the rate and bias of TC. Simulation results show that: (1) while China’s indigenous R&D efforts play a significant role to curb carbon emissions, sole dependence on R&D may be far from sufficient to achieve pledged climate target, with complementary policies being required to reinforce existing climate actions; (2) innovation policies can strengthen R&D investment and cut emissions further, but the complementary effect is relatively minor; (3) carbon taxation can generate significant carbon-saving benefits and fulfill climate target, but this achievement is at the cost of economic losses. The induced technical improvement, however, can partially mitigate the deadweight loss incurred by carbon tax distortion. Keywords: CGE model; Induced technical change; Climate policy modelling (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:enepol:v:49:y:2012:i:c:p:629-641 DOI: 10.1016/j.enpol.2012.07.007 Access Statistics for this article Energy Policy is currently edited by N. France More articles in Energy Policy from Elsevier |
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