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Induced technical change in computable general equilibrium models for climate-change policy analysis

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dc.contributor.advisor Henry D. Jacoby, A. Denny Ellerman and Ernest R. Berndt. en_US Sue Wing, Ian, 1970- en_US
dc.contributor.other Massachusetts Institute of Technology. Technology, Management, and Policy Program. en_US 2005-05-19T14:34:37Z 2005-05-19T14:34:37Z 2001 en_US 2001 en_US
dc.description Thesis (Ph. D.)--Massachusetts Institute of Technology, Sloan School of Management, Technology, Management, and Policy Program, 2001. en_US
dc.description Includes bibliographical references (p. 329-352). en_US
dc.description This electronic version was submitted by the student author. The certified thesis is available in the Institute Archives and Special Collections. en_US
dc.description.abstract Policies to avert the threat of dangerous climate change focus on stabilizing atmospheric carbon dioxide concentrations by drastically reducing anthropogenic emissions of carbon. Such reductions require limiting the use of fossil fuels-which supply the bulk of energy to economic activity, and for which substitutes are lacking-which is feared will cause large energy price increases and reductions in economic welfare. However, a key determinant of the cost of emissions limits is technological change-especially innovation induced by the price changes that stem from carbon abatement itself, about which little is understood.This thesis investigates the inducement of technological change by limits on carbon emissions, and the effects of such change on the macroeconomic cost of undertaking further reductions. The analysis is conducted using a computable general equilibrium (CGE) model of the US economy-a numerical simulation that determines aggregate welfare based on the interaction of prices with the demands for and supplies of commodities and factors across different markets. Within the model induced technical change (ITC) is represented by the effect of emissions limits on the accumulation of the economy's stock of knowledge, and by the reallocation of the intangible services generated by the stock, which are a priced input to sectoral production functions. en_US
dc.description.abstract (cont.) The results elucidate four key features of ITC: (1) the inducement process, i.e., the mechanism by which relative prices determine the level and the composition of aggregate R&D; (2) the effects of changes in R&D on knowledge accumulation in the long-run, and of contemporaneous substitution of knowledge services within and among industries; (3) the loci of sectoral changes in intangible investment and knowledge inputs induced by emissions limits; and (4) the ultimate impact of the accumulation and substitution of knowledge on economic welfare. en_US
dc.description.statementofresponsibility by Ian Sue Wing. en_US
dc.format.extent 352 p. en_US
dc.format.extent 2925925 bytes
dc.format.extent 2925680 bytes
dc.format.mimetype application/pdf
dc.format.mimetype application/pdf
dc.language.iso eng en_US
dc.publisher Massachusetts Institute of Technology en_US
dc.rights M.I.T. theses are protected by copyright. They may be viewed from this source for any purpose, but reproduction or distribution in any format is prohibited without written permission. See provided URL for inquiries about permission. en_US
dc.subject Technology, Management, and Policy Program. en_US
dc.title Induced technical change in computable general equilibrium models for climate-change policy analysis en_US
dc.type Thesis en_US Ph.D. en_US
dc.contributor.department Massachusetts Institute of Technology. Technology, Management, and Policy Program. en_US
dc.identifier.oclc 49650561 en_US

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