Effect of Feed-In Tariff with Deregulation on Directed Technical Change in the Energy Sector

2021 ◽  
Vol 0 (0) ◽  
Author(s):  
Minoru Nakada
Keyword(s):  
Technical Change ◽  
Energy Sector ◽  
Saving Energy ◽  
Resource Saving ◽  
Balanced Growth ◽  
Directed Technical Change ◽  
Final Good ◽  
Balanced Growth Path ◽  
The Government ◽  
Feed In Tariff

Abstract In this study, we examine how a feed-in tariff (FIT) accompanied with deregulation in the energy sector affects the direction of technical change along the balanced growth path. A final good is composed of resource-saving (such as renewable) energy and traditional resource-intensive energy. The government introduces a FIT scheme for promoting resource-saving energy, while it deregulates the traditional energy sector for efficiency improvement. The implementation of the scheme positively affects directed technical change toward the resource-saving energy technology and economic growth. Meanwhile, the biased technical change leads to an upsurge in the surcharge. Associated deregulation not only accelerates the biased technical change but also drives the surge in the surcharge rate, unless the initial market structure of the traditional energy sector is highly concentrated.

MEDIUM RUN REDUX

2012 ◽  
Vol 17 (4) ◽  
pp. 695-727 ◽  
Author(s):  
Peter McAdam ◽  
Alpo Willman
Keyword(s):  
Production Function ◽  
Financial Market ◽  
Euro Area ◽  
Technical Change ◽  
Time Varying ◽  
Growth Path ◽  
Balanced Growth ◽  
Directed Technical Change ◽  
Tfp Growth ◽  
Balanced Growth Path

We develop a framework for measuring and analyzing medium-run departures from balanced growth, and apply it to developments in the euro area. A time-varying factor-augmenting production function (mimicking directed technical change) with below-unitary substitution elasticity is shown to account for the observed dynamics of factor incomes shares, TFP growth, and its components. Based on careful data accounting, we also identify a rising markup and the importance of financial-market regulations in the 1970s. The balanced growth path emerges as a special (and testable) case of our framework, as do existing strands of medium-run debates.

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)

Directed Technical Change in Labor and Environmental Economics

2021 ◽  
Vol 13 (1) ◽  
Author(s):  
David Hémous ◽  
Morten Olsen
Keyword(s):  
Environmental Economics ◽  
Labor Economics ◽  
Technical Change ◽  
Economic Incentives ◽  
Annual Review ◽  
Publication Date ◽  
Green Technologies ◽  
Directed Technical Change ◽  
Slow Development ◽  
Balanced Growth Path

It is increasingly evident that the direction of technological change responds to economic incentives. We review the literature on directed technical change in the context of environmental economics and labor economics, and we show that these fields have much in common both theoretically and empirically. We emphasize the importance of a balanced growth path and show that the lack of such a path is closely related to the slow development of green technologies in environmental economics and to growing inequality in labor economics. We discuss whether the direction of innovation is efficient. Expected final online publication date for the Annual Review of Economics, Volume 13 is August 2021. Please see http://www.annualreviews.org/page/journal/pubdates for revised estimates.

scholarly journals Offshoring and Directed Technical Change

2012 ◽  
Author(s):  
Daron Acemoglu ◽  
Gino A. Gancia ◽  
Fabrizio Zilibotti
Keyword(s):  
Technical Change ◽  
Directed Technical Change
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