Induced Technological Change in a Multi-regional, Multi-sectoral Integrated Assessment Model (WIAGEM): Impact Assessment of Climate Policy Strategies

Claudia Kemfert

No 435, Discussion Papers of DIW Berlin from DIW Berlin, German Institute for Economic Research

Abstract: This paper illustrates the representation of induced technological change in the multi- regional, multi-sectoral integrated assessment model WIAGEM. The main aim of this paper is to investigate quantitatively economic impacts of climate policy measures due to induced technological changes that are considered. Improved technological innovations are triggered by increased R&D expenditures that advance energy efficiencies. Model results show that induced technological changes due to increased investment in R&D reduce compliance costs. Although R&D expenditures compete with other investment expenditures, we find that increased R&D expenditures improve energy efficiency that substantially lowers abatement costs. Without the inclusion of induced technological changes, emission targets are primarily reached by production declines, resulting in overall welfare reductions. With the inclusion of induced technological changes, emission mitigations can achieve fewer production drawbacks. Technological spill over effects also lead to improved terms of trade effects.

Keywords: Induced technological change; Multi-regional applied integrated assessment model; Technological spillover (search for similar items in EconPapers)
JEL-codes: C6 D5 O3 Q4 (search for similar items in EconPapers)
Pages: 24 p.
Date: 2004
New Economics Papers: this item is included in nep-env
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

Downloads: (external link)
https://www.diw.de/documents/publikationen/73/diw_01.c.42335.de/dp435.pdf (application/pdf)

Related works:
Journal Article: Induced technological change in a multi-regional, multi-sectoral, integrated assessment model (WIAGEM): Impact assessment of climate policy strategies (2005)
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:diw:diwwpp:dp435

Access Statistics for this paper

More papers in Discussion Papers of DIW Berlin from DIW Berlin, German Institute for Economic Research Contact information at EDIRC.
Bibliographic data for series maintained by Bibliothek ().