Optimal CO 2 Abatement in the Presence of Induced Technological Change

@inproceedings{Goulder1998OptimalC2,
  title={Optimal CO 2 Abatement in the Presence of Induced Technological Change},
  author={Lawrence H. Goulder and Koshy Mathai},
  year={1998}
}
This paper explores the significance of policy-induced technological change for the design of carbon-abatement policies. We derive analytical expressions characterizing optimal CO2 abatement and carbon tax profiles under different specifications for the channels through which technological progress occurs. We consider both R&D-based and learning-by-doing-based knowledge accumulation, and examine each specification under both a cost-effectiveness and a benefit-cost policy criterion. We show… CONTINUE READING
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