The Unilateral Implementation of a Sustainable Growth Path with Directed Technical Change

Inge van den Bijgaart

No 2015.11, Working Papers from Fondazione Eni Enrico Mattei

Abstract: We determine the core characteristics of a climate coalition’s optimal policies in a dynamic two country directed technical change framework. Unilateral policies alter the structure of production and thereby innovation incentives across countries. Whenever feasible, optimal policies implement sustainable growth by directing global innovation to the nonpolluting sector. If nonparticipants drive global innovation, this requires policies relocating clean production to nonparticipants. A calibration exercise suggests that the US or EU alone are too small to implement sustainable growth. A coalition of Annex I countries that signed the Kyoto protocol can implement sustainable growth, yet required tax rates are very high.

Keywords: Sustainable Growth; Technical Change; Innovation (search for similar items in EconPapers)
JEL-codes: Q5 Q56 (search for similar items in EconPapers)
Date: 2015-02
New Economics Papers: this item is included in nep-env, nep-gro and nep-res
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Related works:
Journal Article: The unilateral implementation of a sustainable growth path with directed technical change (2017)
Working Paper: The Unilateral Implementation of a Sustainable Growth Path with Directed Technical Change (2015)
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Persistent link: https://EconPapers.repec.org/RePEc:fem:femwpa:2015.11

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