Green innovation and the transition toward a clean economy

Daron Acemoglu, Philippe Aghion, Lint Barrage and David Hémous
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Philippe Aghion: Collège de France; INSEAD; London School of Economics and Political Science
Lint Barrage: ETH Zurich
David Hémous: University of Zurich
Authors registered in the RePEc Author Service: David Hemous

No WP23-14, Working Paper Series from Peterson Institute for International Economics

Abstract: To combat climate change without sacrificing long-term economic growth, innovation must be redirected toward green technologies. The authors review recent literature that has developed a directed technical change framework where innovation can be endogenously targeted either toward fossil-fuel enhancing technologies or clean energy sources (such as renewables). They provide empirical evidence of path dependence in firms' choice between green and dirty innovation. They then draw implications of this path dependence for the design of environmental policy and for economic growth. In particular, they show that their framework has distinctive implications regarding unilateral environmental policies, international cooperation, the use of intermediate energy sources such as natural gas, and the role of civil society.

Keywords: green growth; endogenous growth; directed technical change; climate change; innovation; environmental policy (search for similar items in EconPapers)
JEL-codes: F18 O30 O41 O44 Q43 Q54 Q55 (search for similar items in EconPapers)
Date: 2023-12
New Economics Papers: this item is included in nep-cse, nep-ene, nep-env, nep-gro, nep-ino, nep-res and nep-tid
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Persistent link: https://EconPapers.repec.org/RePEc:iie:wpaper:wp23-14

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