Human capital formation and global warming mitigation: evidence from an integrated assessment model

Carlo Carraro (), Enrica De Cian () and Massimo Tavoni ()

No 2009_30, Working Papers from Department of Economics, University of Venice "Ca' Foscari"

Abstract: Whereas the linkage between technology and climate policy has been extensively analysed, the interaction between climate policies and human capital formation has received considerably less attention. Human capital is a determinant of economic growth and, at the same time, it affects the efficiency of responses to climate change. Based on recent empirical evidence, this paper includes human capital and knowledge in a state-of-the art integrated assessment model. Introducing human capital makes it possible to assess the interplay between innovation, human capital, climate change, and education policies. Results indicate that climate policy stimulates a dedicated form of energy-knowledge without reducing generic R&D investments. Since advancements in labour productivity have a negative impact on the environment because labour is assumed to be complement to energy, climate policy reduces education investments, on which human capital is built. However, inspection of a policy mix combining climate and education targets shows that education and climate goals can be coupled incurring in small additional economic penalties. We thus provide evidence that apparently opposing policy goals can and should be pursued together. We also provide a preliminary investigation of knowledge stimulating education.

Keywords: Climate Policy; Innovation; Human capital (search for similar items in EconPapers)
JEL-codes: O33 O41 Q43 (search for similar items in EconPapers)
Pages: 26
Date: 2009
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (13)

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Related works:
Working Paper: Human Capital Formation and Global Warming Mitigation: Evidence from an Integrated Assessment Model (2009)
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Persistent link: https://EconPapers.repec.org/RePEc:ven:wpaper:2009_30

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