Article ID Journal Published Year Pages File Type
985204 Resource and Energy Economics 2007 22 Pages PDF
Abstract

This paper studies energy bias in technical change. For this purpose, we develop a computable general-equilibrium model that builds on endogenous growth models. The model explicitly captures links between energy, the rate and direction of technical change, and the economy. We show the importance of feedback in technical change, substitution possibilities between final goods, and general-equilibrium effects for energy bias in technical change. If the feedback effect is strong, or the substitution elasticity large, or both, our model tends to a corner solution in which only technologies are developed that are appropriate for production of non-energy intensive goods.

Related Topics
Physical Sciences and Engineering Energy Energy (General)
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