| Title |
Climate Policy and Innovation: A Quantitative Macroeconomic Analysis |
| ID_Doc |
35618 |
| Authors |
Fried, S |
| Title |
Climate Policy and Innovation: A Quantitative Macroeconomic Analysis |
| Year |
2018 |
| Published |
American Economic Journal-Macroeconomics, 10, 1 |
| DOI |
10.1257/mac.20150289 |
| Abstract |
A carbon tax can induce innovation in green technologies. I evaluate the quantitative impact of this channel in a dynamic, general equilibrium model with endogenous innovation in fossil, green, and nonenergy inputs. I discipline the parameters using evidence from historical oil shocks, after which both energy prices and energy innovation increased substantially. I find that a carbon tax induces large changes in innovation. This innovation response increases the effectiveness of the policy at reducing emissions, resulting in a 19.2 percent decrease in the size of the carbon tax required to reduce emissions by 30 percent in 20 years. |
| Author Keywords |
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| Index Keywords |
Index Keywords |
| Document Type |
Other |
| Open Access |
Open Access |
| Source |
Social Science Citation Index (SSCI) |
| EID |
WOS:000419330900004 |
| WoS Category |
Economics |
| Research Area |
Business & Economics |
| PDF |
https://www.aeaweb.org/articles/pdf/doi/10.1257/mac.20150289
|