Environmental Policy and Growth when Inputs are Differentiated in Pollution Intensity
Francesco Ricci
Post-Print from HAL
Abstract:
Environmental policy affects the distribution of market shares if intermediate goods are differentiated in their pollution intensity. When innovations are environment-friendly, a tax on emissions skews demand towards new goods which are the most productive. In this case, the tax has to increase along a balanced growth path to keep the market shares of goods of different vintages constant. Comparing balanced growth paths, we find that tightening the policy stance spurs innovation, because it increases the market share of recent vintages, and promotes environment-friendly technological progress. As a result the cost of environmental policy in terms of slower growth is weaker.
Keywords: Endogenous growth; Environmental policy; Induced technological change JEL Classification Codes: O41 (search for similar items in EconPapers)
Date: 2007-10-04
Note: View the original document on HAL open archive server: https://hal.science/hal-02024122v1
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (25)
Published in Environmental and Resource Economics, 2007, 38 (3), pp.285-310
Downloads: (external link)
https://hal.science/hal-02024122v1/document (application/pdf)
Related works:
Journal Article: Environmental policy and growth when inputs are differentiated in pollution intensity (2007) 
Working Paper: Environmental policy and growth when inputs are differentiated in pollution intensity (2007)
Working Paper: Environmental Policy and Growth when Inputs are Differentiated in Pollution Intensity (2004) 
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:hal:journl:hal-02024122
Access Statistics for this paper
More papers in Post-Print from HAL
Bibliographic data for series maintained by CCSD (hal@ccsd.cnrs.fr).