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Chapter 11 Technological change and the environment

Adam Jaffe (), Richard Newell () and Robert Stavins

Chapter 11 in Handbook of Environmental Economics, 2003, vol. 1, pp 461-516 from Elsevier

Abstract: Environmental policy discussions increasingly focus on issues related to technological change. This is partly because the environmental consequences of social activity are frequently affected by the rate and direction of technological change, and partly because environmental policy interventions can themselves create constraints and incentives that have significant effects on the path of technological progress. This chapter summarizes current thinking on technological change in the broader economics literature, surveys the growing economic literature on the interaction between technology and the environment, and explores the normative implications of these analyses. We begin with a brief overview of the economics of technological change, and then examine theory and empirical evidence on invention, innovation, and diffusion and the related literature on the effects of environmental policy on the creation of new, environmentally friendly technology. We conclude with suggestions for further research on technological change and the environment.

JEL-codes: Q50 (search for similar items in EconPapers)
Date: 2003
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