Directed technical change and environmental quality
Óscar Afonso (),
Manuela Magalhães () and
Paulo B. Vasconcelos
Additional contact information
Óscar Afonso: University of Porto
Liliana Fonseca: University of Porto
Paulo B. Vasconcelos: University of Porto
Portuguese Economic Journal, 2021, vol. 20, issue 1, No 4, 97 pages
Abstract We propose a directed technical change model with two sectors, clean and dirty, to analyze the impact of the degree of substitutability between sectors and the degree of scale effects on the environmental quality. The technological knowledge is biased towards the clean sector; i.e., the environmental quality is improved whenever the elasticity of substitution between inputs in both sectors increases and, along with that, the economy: (i) is rich in renewable capital, (ii) has higher relative supply of clean labor under scale effects, and (iii) enjoys higher relative R&D productivity in the clean sector. The improvement in the environmental quality benefits the welfare. Moreover, the growth rate is higher in the presence of scale effects.
Keywords: Directed technical change; Clean and dirty sectors; Substitutability; Scale effects; Wage inequality; Environmental quality (search for similar items in EconPapers)
JEL-codes: J31 O30 O41 Q55 Q58 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
http://link.springer.com/10.1007/s10258-020-00174-4 Abstract (text/html)
Access to the full text of the articles in this series is restricted.
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:spr:portec:v:20:y:2021:i:1:d:10.1007_s10258-020-00174-4
Ordering information: This journal article can be ordered from
http://www.springer. ... cs/journal/10258/PS2
Access Statistics for this article
Portuguese Economic Journal is currently edited by Luís F. Costa
More articles in Portuguese Economic Journal from Springer, Instituto Superior de Economia e Gestao
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().