The Environment and Directed Technical Change: Comment
Jean-Charles Hourcade,
Antonin Pottier and
Etienne Espagne
No 120046, Climate Change and Sustainable Development from Fondazione Eni Enrico Mattei (FEEM)
Abstract:
This paper discusses the growth model with environmental constraints recently presented in (Acemoglu et al., 2011) which focuses on the redirection of technical change by climate policies with research subsidies and a carbon tax. First, Acemoglu et al.'s model and chosen parameters yield numerical results that do not support the conclusion that ambitious climate policies can be conducted “without sacrificing (much or any) long-run growth”. Second, they select unrealistic key parameters for carbon sinks and elasticity of substitution. We find that more realistic parameters lead to very different results. Third, the model leads to an unrealistic conclusion when used to analyse endogenous growth, suggesting specification problems.
Keywords: Environmental; Economics; and; Policy (search for similar items in EconPapers)
Pages: 17
Date: 2011-12
References: Add references at CitEc
Citations: View citations in EconPapers (11)
Downloads: (external link)
https://ageconsearch.umn.edu/record/120046/files/NDL2011-095.pdf (application/pdf)
Related works:
Working Paper: The Environment and Directed Technical Change: Comment (2011) 
Working Paper: The environment and directed technical change: comment (2011) 
Working Paper: The environment and directed technical change: comment (2011) 
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:ags:feemcl:120046
DOI: 10.22004/ag.econ.120046
Access Statistics for this paper
More papers in Climate Change and Sustainable Development from Fondazione Eni Enrico Mattei (FEEM) Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().