Green Technology Adoption and the Business Cycle
Jean-Marc Bourgeon () and
No 6485, CESifo Working Paper Series from CESifo Group Munich
We analyze the adoption of green technology in a dynamic economy affected by random shocks where demand spillovers are the main driver of technological improvements. Firmsâ€™ beliefs and consumersâ€™ anticipations drive the path of the economy. We derive the optimal policy of investment subsidy and the expected time and likelihood of reaching a targeted level of environmental quality under economic uncertainty. This allows us to estimate the value that should be given to the environment in order to avoid an environmental catastrophe as a function of the strength of spillover effects.
Keywords: growth; sustainability; uncertainty (search for similar items in EconPapers)
JEL-codes: E30 O30 O44 Q50 (search for similar items in EconPapers)
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Working Paper: Green Technology Adoption and the Business Cycle (2017)
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Persistent link: https://EconPapers.repec.org/RePEc:ces:ceswps:_6485
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