Induced technological change in a multi-regional, multi-sectoral, integrated assessment model (WIAGEM): Impact assessment of climate policy strategies
Research output: Journal contributions › Journal articles › Research › peer-review
Standard
In: Ecological Economics, Vol. 54, No. 2-3, 01.08.2005, p. 293-305.
Research output: Journal contributions › Journal articles › Research › peer-review
Harvard
APA
Vancouver
Bibtex
}
RIS
TY - JOUR
T1 - Induced technological change in a multi-regional, multi-sectoral, integrated assessment model (WIAGEM)
T2 - Impact assessment of climate policy strategies
AU - Kemfert, Claudia
PY - 2005/8/1
Y1 - 2005/8/1
N2 - 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 advance energy efficiency. Model results show that induced technological changes due to increased investment in R&D reduce compliance costs. Although R&D expenditures compete with other investment expenditures, we find that increased R&D expenditures improve energy efficiency which substantially lowers abatement costs. Without the inclusion of induced technological changes, emission targets are primarily reached by declines in production, resulting in overall welfare reductions. With the inclusion of induced technological changes, emission mitigations can be achieved with fewer production drawbacks. Technological spillover effects also lead to improved terms-of-trade effects.
AB - 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 advance energy efficiency. Model results show that induced technological changes due to increased investment in R&D reduce compliance costs. Although R&D expenditures compete with other investment expenditures, we find that increased R&D expenditures improve energy efficiency which substantially lowers abatement costs. Without the inclusion of induced technological changes, emission targets are primarily reached by declines in production, resulting in overall welfare reductions. With the inclusion of induced technological changes, emission mitigations can be achieved with fewer production drawbacks. Technological spillover effects also lead to improved terms-of-trade effects.
KW - Economics
KW - Induced technological change
KW - Multi-regional applied integrated assessment model
KW - Technological spillover
UR - http://www.scopus.com/inward/record.url?scp=22444446394&partnerID=8YFLogxK
UR - https://www.mendeley.com/catalogue/5eeec4ef-209e-3d5b-9df7-cf6b5c8719fc/
U2 - 10.1016/j.ecolecon.2004.12.031
DO - 10.1016/j.ecolecon.2004.12.031
M3 - Journal articles
AN - SCOPUS:22444446394
VL - 54
SP - 293
EP - 305
JO - Ecological Economics
JF - Ecological Economics
SN - 0921-8009
IS - 2-3
ER -