scholarly journals GREEN TRANSITIONS AND THE PREVENTION OF ENVIRONMENTAL DISASTERS: MARKET-BASED VS. COMMAND-AND-CONTROL POLICIES

2019 ◽  
Vol 24 (7) ◽  
pp. 1861-1880 ◽  
Author(s):  
Francesco Lamperti ◽  
Mauro Napoletano ◽  
Andrea Roventini
Keyword(s):  
Technical Change ◽  
Path Dependence ◽  
Command And Control ◽  
Empirical Support ◽  
Clean Energy ◽  
Carbon Taxes ◽  
Directed Technical Change ◽  
Environmental Disasters ◽  
Climate Policies ◽  
And Control

The paper compares the effects of market-based (M-B) and command-and-control (C&C) climate policies on the direction of technical change and the prevention of environmental disasters. Drawing on a model of endogenous growth and directed technical change, we show that M-B policies (carbon taxes and subsidies toward clean sectors) suffer from path dependence and exhibit bounded window of opportunities: delays in their implementation make them ineffective both in redirecting technical change, (i.e. triggering a transition toward clean energy) and in avoiding environmental catastrophes. On the contrary, we find that C&C interventions are favored by path dependence and guarantee policy effectiveness irrespectively of the timing of their introduction. As the hypothesis of path dependence in technological change has received vast empirical support and it is a key feature of many models of growth, we argue that C&C policies should be seen as a valuable and non-equivalent alternative to M-B interventions.

Environmental Regulation, Directed Technical Change, and Economic Growth: Theoretic Model and Evidence from China

2019 ◽  
Vol 42 (5-6) ◽  
pp. 519-549 ◽  
Author(s):  
Juan Tang ◽  
Shihu Zhong ◽  
Guocheng Xiang
Keyword(s):  
Economic Growth ◽  
Environmental Pollution ◽  
Environmental Regulation ◽  
Technical Change ◽  
Energy Production ◽  
Path Dependence ◽  
Clean Energy ◽  
Theoretic Model ◽  
Directed Technical Change ◽  
Production Technologies

Can environmental regulation be used to promote directed technical change and economic growth simultaneously? We construct an endogenous economic growth model that includes environmental regulation, the extent of environmental pollution, and economic performance in a general equilibrium framework. We show that in the absence of government intervention, environmental pollution will not automatically disappear as economic growth increases. Furthermore, “threshold constraints” result from “path dependence” in the type of innovation; only when the rate of carbon tax and carbon reduction subsidy reaches a certain extent will individuals (or producers) redirect technical change toward “clean” energy production technologies innovation and away from “dirty” energy production technologies. Our article also discloses the intrinsic principle and micromechanism of environmental regulation to promote economic growth and finds that strict environmental regulation will both significantly promote the evolving labor division in clean energy production technologies innovation and achieve the benefits of improved average labor productivity in the production sector and the market size of goods, so that the benefit exceeds the switching cost.

scholarly journals Carbon Taxes, Path Dependency, and Directed Technical Change: Evidence from the Auto Industry

2016 ◽  
Vol 124 (1) ◽  
pp. 1-51 ◽  
Author(s):  
Philippe Aghion ◽  
Antoine Dechezleprêtre ◽  
David Hémous ◽  
Ralf Martin ◽  
John Van Reenen
Keyword(s):  
Technical Change ◽  
Auto Industry ◽  
Path Dependency ◽  
Carbon Taxes ◽  
Directed Technical Change

scholarly journals Carbon Taxes, Path Dependency and Directed Technical Change: Evidence from the Auto Industry

2012 ◽  
Author(s):  
Philippe Aghion ◽  
Antoine Dechezleprêtre ◽  
David Hemous ◽  
Ralf Martin ◽  
John Van Reenen
Keyword(s):  
Technical Change ◽  
Auto Industry ◽  
Path Dependency ◽  
Carbon Taxes ◽  
Directed Technical Change

scholarly journals Carbon Taxes, Path Dependency and Directed Technical Change: Evidence from the Auto Industry

2013 ◽  
Author(s):  
Philippe Aghion ◽  
Antoine Dechezleprêtre ◽  
David Hemous ◽  
Ralf Martin ◽  
John Michael Van Reenen
Keyword(s):  
Technical Change ◽  
Auto Industry ◽  
Path Dependency ◽  
Carbon Taxes ◽  
Directed Technical Change

scholarly journals The Environment and Directed Technical Change

2012 ◽  
Vol 102 (1) ◽  
pp. 131-166 ◽  
Author(s):  
Daron Acemoglu ◽  
Philippe Aghion ◽  
Leonardo Bursztyn ◽  
David Hemous
Keyword(s):  
Growth Model ◽  
Technical Change ◽  
Optimal Policy ◽  
Slow Growth ◽  
Sustainable Growth ◽  
Environmental Constraints ◽  
Carbon Taxes ◽  
Exhaustible Resource ◽  
Directed Technical Change ◽  
Final Good

This paper introduces endogenous and directed technical change in a growth model with environmental constraints. The final good is produced from “dirty” and “clean” inputs. We show that: (i) when inputs are sufficiently substitutable, sustainable growth can be achieved with temporary taxes/subsidies that redirect innovation toward clean inputs; (ii) optimal policy involves both “carbon taxes” and research subsidies, avoiding excessive use of carbon taxes; (iii) delay in intervention is costly, as it later necessitates a longer transition phase with slow growth; and (iv) use of an exhaustible resource in dirty input production helps the switch to clean innovation under laissez-faire. (JEL O33, O44, Q30, Q54, Q56, Q58)

scholarly journals Carbon Taxes, Path Dependency and Directed Technical Change: Evidence from the Auto Industry

2012 ◽  
Author(s):  
Philippe Aghion ◽  
Antoine Dechezleprêtre ◽  
David Hemous ◽  
Ralf Martin ◽  
John Michael Van Reenen
Keyword(s):  
Technical Change ◽  
Auto Industry ◽  
Path Dependency ◽  
Carbon Taxes ◽  
Directed Technical Change

scholarly journals Energy Mix, Financial Development and Carbon Emissions in China: A Directed Technical Change Perspective

2021 ◽  
Author(s):  
shujie yao ◽  
Shuai Zhang
Keyword(s):  
Energy Consumption ◽  
Financial Development ◽  
Carbon Emissions ◽  
Technical Change ◽  
Policy Implication ◽  
Substitution Effect ◽  
Clean Energy ◽  
Income Effects ◽  
Directed Technical Change ◽  
The Relationship

Abstract Based on a two-sector (clean energy and dirty energy) model of directed technical change, we examine the relationship between carbon emissions, clean energy consumption and financial development in China using the ARDL method. Clean energy consumption reduces carbon emissions effectively but the effect of financial development is opposite, suggesting that financial development increases carbon emissions, contradicting the findings of many existing studies. Then, we decompose financial sector development on carbon emissions into two different effects: the substitution and income effects. The substitution effect reflects more dirty energy consumption as a result of directed technical change promoted by financial development, leading to more carbon emissions. In contrast, the income effect results in a decline of carbon emissions because financial development enables firms to use more clean energy. The empirical results indicate that the net effect of financial development has caused more carbon emissions. The policy implication is also discussed.JEL: Q01, Q42, Q56

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