Energy Biased Technical Change: A CGE Analysis

Andreas Löschel, Vincent M. Otto and Rob Dellink

No 05-32, ZEW Discussion Papers from ZEW - Leibniz Centre for European Economic Research

Abstract: This paper studies energy bias in technical change. For this purpose, we develop a computable general equilibrium model that builds on endogenous growth models. The model explicitly captures links between energy, the rate and direction of technical change, and the economy. We derive the equilibrium determinants of biased technical change and show the importance of feedback in technical change, substitution possibilities between final goods, and generalequilibrium effects for the equilibrium bias. If the feedback effect is strong, or the substitution elasticity large, or both, our model tends to a corner solution in which only technologies are developed that are appropriate for production of non-energy intensive goods.

Keywords: computable general-equilibrium models; endogenous technical change; energy; environment (search for similar items in EconPapers)
JEL-codes: D58 H23 O32 O33 O38 (search for similar items in EconPapers)
Date: 2005
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Citations: View citations in EconPapers (2)

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Related works:
Journal Article: Energy biased technical change: A CGE analysis (2007)
Working Paper: Energy Biased Technical Change: A CGE Analysis (2005)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:zewdip:3278

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