The Optimal Climate Policy Portfolio When Knowledge Spills Across Sectors

Massetti, Emanuele; Nicita, Lea

doi:10.2139/ssrn.1669161

Cited by 67 publications

(5 citation statements)

References 64 publications

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“…International R&D spillovers and global learning connect the technological frontier of all regions in this non-cooperative framework (Bosetti et al 2008). In an enhanced versions of the WITCH model technical change can be directed towards the capital-labour aggregate and knowledge spillovers are modelled at both domestic and international level (Carraro, Massetti and Nicita 2009;Massetti and Nicita 2010 The persistence of the income gap between the richest economies and China hasand will have -important repercussions in all international negotiations to share the global cost of containing global warming. However, China will likely surpass the world average per capita GDP around 2035, in our scenarios.…”

Section: Introductionmentioning

confidence: 99%

Energy and climate change in China

Carraro¹,

Massetti²

2012

Envir. Dev. Econ.

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SummaryThe paper examines future energy and emissions scenarios in China, presenting historical data and scenarios generated using the Integrated Assessment Model WITCH. A Businessas-Usual scenario is compared with four scenarios in which Greenhouse Gases emissions are taxed, at different levels. Key insights are provided to evaluate the Chinese pledge to reduce the emissions intensity of Gross Domestic Product by 40/45 percent in 2020 contained in the Copenhagen Accord. Marginal and total abatement costs are discussed using the OECD economies as a term of comparison. Cost estimates for different emissions reduction targets are used to assess the political feasibility of the 50 percent global reduction target set by the G8 and Major Economies Forum in July 2009. Keywords AbstractThe paper examines future energy and emissions scenarios in China, presenting historical data and scenarios generated using the Integrated Assessment Model WITCH. A Businessas-Usual scenario is compared with four scenarios in which Greenhouse Gases emissions are taxed, at different levels. Key insights are provided to evaluate the Chinese pledge to reduce the emissions intensity of Gross Domestic Product by 40/45 percent in 2020 contained in the Copenhagen Accord. Marginal and total abatement costs are discussed using the OECD economies as a term of comparison. Cost estimates for different emissions reduction targets are used to assess the political feasibility of the 50 percent global reduction target set by the G8 and Major Economies Forum in July 2009.

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Section: Introductionmentioning

confidence: 99%

Energy and climate change in China

Carraro¹,

Massetti²

2012

Envir. Dev. Econ.

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“…It is evident that the world is spending more on renewable energy innovation today than before (Jaganmohan, 2021) with a record amount of $501.3 billion in 2020 on renewable power, electric vehicles and other technologies to reduce our fossil fuel dependence (Saul & Mathis, 2021). The more innovation is produced within a country's borders, the more capable this country is likely to be to (Carraro et al, 2009;Magenta et. al, 2010).…”

Section: Hypothesesmentioning

confidence: 99%

The impact of countries' culture norms and innovations on their adaptive capacity to climate change

Abdelzaher

Martynov

2022

Sustainable Development

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Innovation has been discussed as a mechanism to help markets adapt to the consequences of climate change but the adoption of innovation is shaped by a set of formal and informal institutions, one of which is national culture norms. In this empirical study, we examine the impact of innovation on adaptive capacity to climate change then investigate how national culture norms enhance or weaken this relationship, using a database of 42 countries across the period of 2009-2020. We find that innovation has a positive effect on countries' adaptive capacity to climate change and the culture dimensions of Uncertainty Avoidance and Future Orientation moderate this relationship, such that countries scoring high on Uncertainty Avoidance and Future Orientation are better able to channel innovation into the adaptive capacity to climate change.Furthermore, while we found that Uncertainty Avoidance and Future Orientation had a direct positive impact on adaptive capacity, the dimension of institutional collectiveness had no significant impact. Implications for policy makers are discussed.

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“…It is often argued that a combination of energy and research policies is more fruitful (e.g. in Massetti and Nicita (2010)). R&D subsidies increase the attractiveness of investments and thus even further decrease the dierence of aggregate output and investments to the respective benchmark paths.…”

Section: Base Scenariomentioning

confidence: 99%

Dynamic Effects and Structural Change Under Environmental Regulation in a CGE Model with Endogenous Growth

Ramer

2011

SSRN Journal

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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. In this paper, we use a CGE model with endogenous growth to study the interplay between environmental regulation, innovation and sectoral growth. We nd that a stringent reduction target for carbon emissions combined with a CO 2 -tax leads to structural changes. Under the assumption of a unilateral policy, the economy specializes in producing the energy-extensive good. Coupling the carbon tax with policies that aim at directly supporting sectoral capital accumulation signicantly mitigates the negative impacts on competitiveness and growth. Finally, we identify two parameters that play an important role in applied energy policy analysis. First, the assumptions on the substitutability between fossil and non-fossil energy strongly aect the eectiveness of a given policy. When fossil and non-fossil energy are good substitutes, structural change in the economy is far less pronounced than under relative complementarity. Second, the rate of pure time preference has a pronounced impact on the investment incentives and thus on long-run development. Increasing the discount rate from 0.9% to 4.5% leads to a contraction in investments and to lower growth rates in all sectors. Terms of use: Documents inJEL-Classication: C68, O31, O41, Q43

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The Optimal Climate Policy Portfolio When Knowledge Spills Across Sectors

Cited by 67 publications

References 64 publications

Energy and climate change in China

Energy and climate change in China

The impact of countries' culture norms and innovations on their adaptive capacity to climate change

Dynamic Effects and Structural Change Under Environmental Regulation in a CGE Model with Endogenous Growth

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