Energy Saving Technological Progress in a Vintage Capital Model

Perez-Barahona Agustin and Benteng Zou
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Perez-Barahona Agustin: UNIVERSITE CATHOLIQUE DE LOUVAIN, Institut de Recherches Economiques et Sociales (IRES)

No 2003026, LIDAM Discussion Papers IRES from Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES)

Abstract: Fossil fuel is an essential input throughout all modern economies. The reduced availability of this basic input to production, and the stabilization of greenhouse gases concentration - which requires reductions in fossil fuel energy use - would have a negative impact in GDP and economic growth through cutbacks in energy use. However, this trade-off between energy reduction and growth could be less severe if energy conservation is raised by ernergy saving technologies. Here we study this hypothesis and, in particular, the effect of tax over the energy expenditure of firms as a way to promote investments in energy saving technologies. To this we consider a general equilibrium model with embodied and exogenous energy saving technological progress in a vintage capital framework, where the scrapping rule is endogenous and linear simplifications are eliminated.

Keywords: Environment; Nonrenewable resources; Eneregy; Energy saving (search for similar items in EconPapers)
JEL-codes: C68 H23 O31 O41 Q43 (search for similar items in EconPapers)
Pages: 39
Date: 2003-12-01
New Economics Papers: this item is included in nep-dge and nep-ino
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Related works:
Chapter: Energy-saving technological progress in a vintage capital model (2006)
Working Paper: Energy-saving technological progress in a vintage capital model (2006)
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Persistent link: https://EconPapers.repec.org/RePEc:ctl:louvir:2003026

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