Quantifying distortions from pollution in a R&D endogenous growth model

Tiago Sequeira and Alexandra Lopes ()

Estudios de Economia, 2014, vol. 41, issue 1 Year 2014, 149-159

Abstract: In this note we study the distortions in an endogenous growth model developed by Grimaud and Tournemaine (2007), where new pieces of knowledge are produced in a R&D sector and used to reduce pollution emissions. Using this model along with a realistic calibration, we conclude that the economy strongly underinvests in R&D, such that the policy maker would need to implement a strong tax-subsidy scheme to correct it. We suggest that a subsidy to human capital can also decrease the gap between market and optimal allocations.

Keywords: Pollution; environmental tax; R&D; economic growth; subsidies. (search for similar items in EconPapers)
JEL-codes: O13 O15 O31 O41 Q50 (search for similar items in EconPapers)
Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.econ.uchile.cl/uploads/publicacion/c9b5 ... b67cb92d7aa5df6b.pdf (application/pdf)

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:udc:esteco:v:41:y:2014:i:1:p:149-159

Access Statistics for this article

Estudios de Economia is currently edited by Rómulo Chumacero

More articles in Estudios de Economia from University of Chile, Department of Economics Contact information at EDIRC.
Bibliographic data for series maintained by Verónica Kunze ().