Worldwide climate protection suffered another serious set-back last year. According to preliminary estimates, energy-induced emissions of carbon dioxide (CO2) - the most important greenhouse gas by far - increased by approx. 4.5% on a worldwide basis in 2004 in comparison to the previous year; compared to 1990, the increase amounted to more than one fourth. For the total greenhouse gas emissions, only ...
This paper illustrates the representation of induced technological change in the multi-regional, multi-sectoral integrated assessment model WIAGEM. The main aim of the paper is to investigate quantitatively the economic impacts of climate policy measures due to the induced technological changes that are considered. Improved technological innovations are triggered by increased R&D expenditures that ...
Environmental policies frequently target the ratio of dirty to green output within the same industry. To achieve such targets, the green sector may be subsidized or the dirty sector be taxed. We show that in a monopolistic competition setting, the two policy approaches have different welfare effects, depending on the design of the instrument (ad valorem versus unit instrument) and the initial situation ...