Energy Biased Technical Change: A CGE Analysis

Vincent M. Otto, Andreas Löschel and Rob Dellink
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Vincent M. Otto: Wageningen University

No 2005.90, Working Papers from Fondazione Eni Enrico Mattei

Abstract: This paper studies energy bias in technical change. For this purpose, we develop a computable general equilibrium model that builds on endogenous growth models. The model explicitly captures links between energy, the rate and direction of technical change, and the economy. We derive the equilibrium determinants of biased technical change and show the importance of feedback in technical change, substitution possibilities between final goods, and general-equilibrium effects for the equilibrium bias. If the feedback effect is strong, or the substitution elasticity large, or both, our model tends to a corner solution in which only technologies are developed that are appropriate for production of non-energy intensive goods.

Keywords: Computable general-equilibrium models; Endogenous technical change; Energy; Environment (search for similar items in EconPapers)
JEL-codes: D58 H23 O32 O33 O38 (search for similar items in EconPapers)
Date: 2005-06
New Economics Papers: this item is included in nep-ene and nep-pbe
References: View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Related works:
Journal Article: Energy biased technical change: A CGE analysis (2007)
Working Paper: Energy Biased Technical Change: A CGE Analysis (2005)
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Persistent link: https://EconPapers.repec.org/RePEc:fem:femwpa:2005.90

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