Politiques de R&D, Taxe Carbone et Paradoxe Vert

André Grimaud, Mauricio Bermudez Neubauer and Luc Rouge

No 13-447, TSE Working Papers from Toulouse School of Economics (TSE)

Abstract: We study an economy in which a final good is produced by two sectors. One uses a non-renewable and polluting resource, the other a renewable and clean resource. A specific type of research is associated to each sector. The public authorities levy a carbon tax and simultaneously subsidize both research sectors. We study the impact of such a policy scheme on the rate of resource extraction and emissions. The subsidy to research in the clean sector goes in the opposite direction of the effects of the carbon tax. If the tax creates a green paradox, the subsidy moderates it; if the tax slows down resource extraction, then the subsidy generates a green paradox

Keywords: carbon tax; directed technical change; green paradox; R&D policy (search for similar items in EconPapers)
JEL-codes: O32 O41 Q20 Q32 (search for similar items in EconPapers)
Date: 2013-11
New Economics Papers: this item is included in nep-acc, nep-ene, nep-env, nep-ino and nep-res
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Working Paper: Politiques de R&D, Taxe Carbone et Paradoxe Vert (2013)
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Persistent link: https://EconPapers.repec.org/RePEc:tse:wpaper:27735

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