Transition to Clean Technology
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AAHK_NBER.pdf
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892.12 KB
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Author(s)
Acemoglu, Daron
Akcigit, Ufuk
Hanley, Douglas
Kerr, William
Date Issued
February 2016
Journal
Journal of Political Economy
Publisher
University of Chicago Press
Citation
Acemoglu, Daron, Ufuk Akcigit, Douglas Hanley, and William Kerr. “Transition to Clean Technology.” Journal of Political Economy 124, no. 1 (February 2016): 52–104.
Version
Author's final manuscript
Abstract
We develop an endogenous growth model in which clean and dirty technologies compete in production. Research can be directed to either technology. If dirty technologies are more advanced, the transition to clean technology can be difficult. Carbon taxes and research subsidies may encourage production and innovation in clean technologies, though the transition will typically be slow. We estimate the model using microdata from the US energy sector. We then characterize the optimal policy path that heavily relies on both subsidies and taxes. Finally, we evaluate various alternative policies. Relying only on carbon taxes or delaying intervention has significant welfare costs.
MIT Department
Massachusetts Institute of Technology. Department of Economics
Terms of Use
Creative Commons Attribution-Noncommercial-Share Alike
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DOI of Published Version
https://doi.org/10.1086/684511
