Climate Change Mitigation Options and Directed Technical Change: A Decentralized Equilibrium Analysis
By A. Grimaud, Gilles Lafforgue, B. Magné. Social Science Research Network, 2011
113 citations recorded by the source corpus.
The paper considers a climate change growth model with three R&D sectors dedicated to energy, backstop and CCS (Carbon Capture and Storage) efficiency. First, we characterize the set of decentralized equilibria: A particular equilibrium is associated to each vector of public tools which includes a carbon tax and a subsidy to each R&D sector. Moreover, we show that it is possible to compute any equilibrium as the solution of a maximization program. Second, we solve the first-best optimum problem and we implement it by computing the vector of optimal tools. Finally, we illustrate the theoretical model using some calibrated functional specifications. In particular, we investigate the effects of various combinations of public policies (including the optimal ones) by determining the deviation of each corresponding equilibrium from the "laisser-faire" benchmark.
Subfields: Economics and Econometrics, Renewable Energy, Sustainability and the Environment
View Paper: https://www.semanticscholar.org/paper/1661827a7abb4490508c87b33a3c9c8163a81647
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In Economics and Econometrics
In Renewable Energy, Sustainability and the Environment
Citations in the corpus
- Renewable Energy Subsidies: Second-Best Policy or Fatal Aberration for Mitigation? (2011, unknown): “If carbon pricing is permanently missing, mitigation costs increase by a multiple (compared to the optimal carbon pricing policy) for a wide range of parameters describing extraction costs, renewable energy costs, substitution possibilities and normative attitudes.”
- Learning or Lock-In: Optimal Technology Policies to Support Mitigation (2011, methodology): “Grimaud et al. (2010) use a similar technological structure to analyze carbon pricing and R&D policies in a decentralized economy.”