Knowledge diffusion, endogenous growth, and the costs of global climate policy
Research output: Journal Publications and Reviews (RGC: 21, 22, 62) › 21_Publication in refereed journal › peer-review
Author(s)
Related Research Unit(s)
Detail(s)
Original language | English |
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Pages (from-to) | 47-72 |
Journal / Publication | European Economic Review |
Volume | 93 |
Publication status | Published - 1 Apr 2017 |
Link(s)
Abstract
This paper examines the effects of knowledge diffusion on growth and the costs of climate policy. We develop a general equilibrium model with endogenous growth which represents knowledge diffusion between sectors and regions. Knowledge diffusion depends on accessibility and absorptive capacity which we estimate econometrically using patent and citation data. Knowledge diffusion leads to a “greening” of economies boosting productivity of “clean” carbon-extensive sectors. Knowledge diffusion lowers the costs of global climate policy by about 90% for emerging countries (China) and 20% for developed regions (Europe and USA), depending on the substitutability between different knowledge types.
Research Area(s)
- Climate policy, Endogenous growth, General equilibrium modeling, Knowledge diffusion
Citation Format(s)
Knowledge diffusion, endogenous growth, and the costs of global climate policy. / Bretschger, Lucas; Lechthaler, Filippo; Rausch, Sebastian et al.
In: European Economic Review, Vol. 93, 01.04.2017, p. 47-72.Research output: Journal Publications and Reviews (RGC: 21, 22, 62) › 21_Publication in refereed journal › peer-review