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 journalpeer-review

28 Scopus Citations
View graph of relations

Author(s)

  • Lucas Bretschger
  • Filippo Lechthaler
  • Sebastian Rausch
  • Lin Zhang

Related Research Unit(s)

Detail(s)

Original languageEnglish
Pages (from-to)47-72
Journal / PublicationEuropean Economic Review
Volume93
Publication statusPublished - 1 Apr 2017

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; Zhang, Lin.

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 journalpeer-review