Optimal Timing of Climate Change Policy: Interaction Between Carbon Taxes and Innovation Externalities

摘要: This paper addresses the impact of endogenous technology through research and development (R&D) on timing climate change policy. We develop a model with stock pollutant (carbon dioxide) abatement technological R&D, we use to study interaction between carbon taxes innovation externalities. Our analysis shows that optimal emission reduction policy strongly depends set instruments available. When climate-specific R&D targeting are available, has these step up early innovation. not steer creating demand for saving technologies. That is, should be high compared Pigouvian levels when industry is developing. Finally, calibrate in order explore magnitude theoretical findings within context