The unilateral implementation of a sustainable growth path with directed technical change

Inge van den Bijgaart

doi:10.1016/j.euroecorev.2016.10.005

The unilateral implementation of a sustainable growth path with directed technical change

Inge van den Bijgaart^*

^*Corresponding author for this work

University of Gothenburg
extern

Research output: Contribution to journal › Article › Academic › peer-review

Abstract

We determine the conditions under which unilateral policies can implement global sustainable growth in a dynamic two-country directed technical change framework. Domestic climate policies alter the structure of domestic and foreign production and thereby innovation incentives across countries. Implementing sustainable growth requires redirecting global innovation to the nonpolluting sector. If most innovation takes place in the foreign country, policies must redirect foreign innovation by relocating clean production to the foreign country. A calibration exercise suggests that the US or EU alone are too small to implement sustainable growth. A coalition of Annex I countries that ratified the Kyoto protocol can implement sustainable growth, yet required tax rates are very high.

Original language	English
Pages (from-to)	305-327
Number of pages	23
Journal	European Economic Review
Volume	91
DOIs	https://doi.org/10.1016/j.euroecorev.2016.10.005
Publication status	Published - 1 Jan 2017
Externally published	Yes

Bibliographical note

Funding Information:
I would like to thank to Sjak Smulders and Reyer Gerlagh for helpful discussions and comments. This paper has benefited from the comments of two anonymous referees and the editors. I also thank Mauricio Rodriguez, Peter Kruse-Andersen, Gilbert Kollenbach, Giulia Valacchi, Cees Withagen, and participants at the CREE workshop in Oslo, Tilburg University TSC seminar, WCERE in Istanbul, EEA congress in Mannheim, CIRANO workshop in Montr?al, TI-VU ERC conference in Amsterdam and CESifo Area Conference on Energy and Climate Economics. I thank the Norwegian Research Council Grant no.?209698 for financial support. While carrying out this research, the author was affiliated with CREE|Oslo Center for Research on Environmentally friendly Energy.

Publisher Copyright:
© 2016 Elsevier B.V.

Funding

I would like to thank to Sjak Smulders and Reyer Gerlagh for helpful discussions and comments. This paper has benefited from the comments of two anonymous referees and the editors. I also thank Mauricio Rodriguez, Peter Kruse-Andersen, Gilbert Kollenbach, Giulia Valacchi, Cees Withagen, and participants at the CREE workshop in Oslo, Tilburg University TSC seminar, WCERE in Istanbul, EEA congress in Mannheim, CIRANO workshop in Montr?al, TI-VU ERC conference in Amsterdam and CESifo Area Conference on Energy and Climate Economics. I thank the Norwegian Research Council Grant no.?209698 for financial support. While carrying out this research, the author was affiliated with CREE|Oslo Center for Research on Environmentally friendly Energy.

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

SDG 8 Decent Work and Economic Growth
SDG 13 Climate Action

Keywords

Directed technical change
Trade
Unilateral environmental policy

Access to Document

10.1016/j.euroecorev.2016.10.005

Cite this

@article{0203e7056f8f4385bb2ac0ba2b4cde32,

title = "The unilateral implementation of a sustainable growth path with directed technical change",

abstract = "We determine the conditions under which unilateral policies can implement global sustainable growth in a dynamic two-country directed technical change framework. Domestic climate policies alter the structure of domestic and foreign production and thereby innovation incentives across countries. Implementing sustainable growth requires redirecting global innovation to the nonpolluting sector. If most innovation takes place in the foreign country, policies must redirect foreign innovation by relocating clean production to the foreign country. A calibration exercise suggests that the US or EU alone are too small to implement sustainable growth. A coalition of Annex I countries that ratified the Kyoto protocol can implement sustainable growth, yet required tax rates are very high.",

keywords = "Directed technical change, Trade, Unilateral environmental policy",

author = "\{van den Bijgaart\}, Inge",

note = "Funding Information: I would like to thank to Sjak Smulders and Reyer Gerlagh for helpful discussions and comments. This paper has benefited from the comments of two anonymous referees and the editors. I also thank Mauricio Rodriguez, Peter Kruse-Andersen, Gilbert Kollenbach, Giulia Valacchi, Cees Withagen, and participants at the CREE workshop in Oslo, Tilburg University TSC seminar, WCERE in Istanbul, EEA congress in Mannheim, CIRANO workshop in Montr?al, TI-VU ERC conference in Amsterdam and CESifo Area Conference on Energy and Climate Economics. I thank the Norwegian Research Council Grant no.?209698 for financial support. While carrying out this research, the author was affiliated with CREE|Oslo Center for Research on Environmentally friendly Energy. Publisher Copyright: {\textcopyright} 2016 Elsevier B.V.",

year = "2017",

month = jan,

day = "1",

doi = "10.1016/j.euroecorev.2016.10.005",

language = "English",

volume = "91",

pages = "305--327",

journal = "European Economic Review",

issn = "0014-2921",

publisher = "Elsevier BV",

}

TY - JOUR

T1 - The unilateral implementation of a sustainable growth path with directed technical change

AU - van den Bijgaart, Inge

N1 - Funding Information: I would like to thank to Sjak Smulders and Reyer Gerlagh for helpful discussions and comments. This paper has benefited from the comments of two anonymous referees and the editors. I also thank Mauricio Rodriguez, Peter Kruse-Andersen, Gilbert Kollenbach, Giulia Valacchi, Cees Withagen, and participants at the CREE workshop in Oslo, Tilburg University TSC seminar, WCERE in Istanbul, EEA congress in Mannheim, CIRANO workshop in Montr?al, TI-VU ERC conference in Amsterdam and CESifo Area Conference on Energy and Climate Economics. I thank the Norwegian Research Council Grant no.?209698 for financial support. While carrying out this research, the author was affiliated with CREE|Oslo Center for Research on Environmentally friendly Energy. Publisher Copyright: © 2016 Elsevier B.V.

PY - 2017/1/1

Y1 - 2017/1/1

N2 - We determine the conditions under which unilateral policies can implement global sustainable growth in a dynamic two-country directed technical change framework. Domestic climate policies alter the structure of domestic and foreign production and thereby innovation incentives across countries. Implementing sustainable growth requires redirecting global innovation to the nonpolluting sector. If most innovation takes place in the foreign country, policies must redirect foreign innovation by relocating clean production to the foreign country. A calibration exercise suggests that the US or EU alone are too small to implement sustainable growth. A coalition of Annex I countries that ratified the Kyoto protocol can implement sustainable growth, yet required tax rates are very high.

AB - We determine the conditions under which unilateral policies can implement global sustainable growth in a dynamic two-country directed technical change framework. Domestic climate policies alter the structure of domestic and foreign production and thereby innovation incentives across countries. Implementing sustainable growth requires redirecting global innovation to the nonpolluting sector. If most innovation takes place in the foreign country, policies must redirect foreign innovation by relocating clean production to the foreign country. A calibration exercise suggests that the US or EU alone are too small to implement sustainable growth. A coalition of Annex I countries that ratified the Kyoto protocol can implement sustainable growth, yet required tax rates are very high.

KW - Directed technical change

KW - Trade

KW - Unilateral environmental policy

UR - https://www.scopus.com/pages/publications/85006412274

U2 - 10.1016/j.euroecorev.2016.10.005

DO - 10.1016/j.euroecorev.2016.10.005

M3 - Article

AN - SCOPUS:85006412274

SN - 0014-2921

VL - 91

SP - 305

EP - 327

JO - European Economic Review

JF - European Economic Review

ER -

The unilateral implementation of a sustainable growth path with directed technical change

Abstract

Bibliographical note

Funding

UN SDGs

Keywords

Access to Document

Other files and links

Fingerprint

Cite this