Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
5099590 | Journal of Economic Dynamics and Control | 2011 | 17 Pages |
Abstract
Inducing technological progress is an important objective of environmental regulation. We investigate under which conditions regulation-induced technological progress pursues the best technological option. We analyze a setting with vertical and horizontal technological progress, cost uncertainty, time-limited patent protection, and a case that is typical for some emissi4on-intensive industries, like electricity generation or the chemical industry. Under taxes and standards, only the current least-cost technology is used and developed, implying a lock-in into a possibly inferior technology. Tradable permits yield slower progress but can facilitate the simultaneous development of technologies, rendering lock-ins less likely.
Related Topics
Physical Sciences and Engineering
Mathematics
Control and Optimization
Authors
Frank C. Krysiak,