Learning-by-Doing vs. Learning by Researching in a model of climate change policy analysis

Abstract

Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in Learning by Doing vs Learning by Researching in a Model of Climate Change Policy Analysis SummaryMany predictions and conclusions in the climate change literature have been made and drawn on the basis of theoretical analyses and quantitative models that assume exogenous technological change. One is naturally led to wonder whether those conclusions and policy prescriptions hold in the more realistic case of endogenously evolving technologies. In previous work we took a popular integrated assessment model and modified it so as to allow for an explicit role of the stock of knowledge which accumulates through R&D investment. In our formulation knowledge affects both the output production technology and the emission-output ratio. In this paper we make further progress in our efforts aimed to model the process of technological change. In keeping with recent theories of endogenous growth, we specify two ways in which knowledge accumulates: via a deliberate, optimally selected R&D decision or via experience, giving rise to Learning by Doing. As an illustration, we simulate the model under the two versions of endogenous technical change and look at the dynamics of a selected number of relevant variables, including growth rates of GDP and physical capital, as well as total emissions and rate of domestic abatement.

At Home and Abroad: An Empirical Analysis of Innovation and Diffusion in Energy-Efficient Technologies

“…Subsequently efforts has been made to endogenize the process technical change and, depending on the structure of the climate-economy model (top-down versus bottomup), different strategies have been adopted, from accounting for R&D efforts to modelling learning-by-doing (among others, Grübler and Messner (1996); Goulder and Mathai (2000); Nordhaus (2002); Buonanno et al (2003); Castelnuovo et al (2005)). …”

Subsidies for Learning in Renewable Energy Technologies Under Market Power and Emission Trading

“…Equations (3), (5) demand equalization of the marginal costs of abatement with the allowance price in both periods. In addition, equation (6) states that the discounted cost reduction in the second period induced by learning has to be deducted from first periods marginal cost to determine optimal initial renewable energy production.…”

The Dynamics of Carbon and Energy Intensity in a Model of Endogenous Technical Change

“…These models, called ETC-RICE, extend Nordhaus and Yang (1996)'s RICE model to allow for a R&D-based formulation of induced TC. In the vein of Goulder and Mathai (2000), in subsequent work Castelnuovo, Galeotti, Gambarelli, and Vergalli (2003) specify a version of the ETC-RICE model that features instead an experience-based type of induced TC.…”