Threshold Policy Effects and Directed Technical Change in Energy Innovation

Energy Efficiency and Directed Technical Change

I construct a putty-clay model of directed technical change and use it to analyze the effect of environmental policy on energy use in the United States. The model matches key data patterns that cannot be explained by the standard Cobb-Douglas approach used in climate change economics. In particular, the model captures both the shortand long-run elasticity of substitution between energy and non-...

Directed Technical Change

Your use of the JSTOR archive indicates your acceptance of JSTOR's Terms and Conditions of Use, available at http://www.jstor.org/page/info/about/policies/terms.jsp. JSTOR's Terms and Conditions of Use provides, in part, that unless you have obtained prior permission, you may not download an entire issue of a journal or multiple copies of articles, and you may use content in the JSTOR archive o...

Framing Innovation Policy for Transformative Change: Innovation Policy 3.0

Natural Resource Wealth and Directed Technical Change

This paper analyses the e¤ect of endogenous directed technical change in a resource-rich economy, embedding a version of Acemoglu’s model of directed technical change in a three-by-three trade theory model. Technical progress depends on entrepreneurs who either produce or adopt technology, and who endogenously choose which sector to operate in. The static e¤ect of a resource discovery is de-ind...

The Environment and Directed Technical Change.

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" a...