The Optimal Climate Policy Portfolio when Knowledge Spills Across Sectors

This paper studies the implications for climate policy of the interactions between environmental and knowledge externalities. Using a numerical analysis performed with the hybrid integrated assessment model WITCH, extended to include mutual spillovers between the energy and the non-energy sector, we show that the combination between environmental and knowledge externalities provides a strong rationale for implementing a portfolio of policies for both emissions reduction and the internalisation of knowledge externalities. Moreover, we show that implementing technology policy as a substitute for stabilisation policy is likely to increase global emissions.


Issue Date:
2010-08
Publication Type:
Working or Discussion Paper
PURL Identifier:
http://purl.umn.edu/92912
Total Pages:
96
JEL Codes:
C72; H23; Q25; Q28; O31; O41; Q54




 Record created 2017-04-01, last modified 2017-08-25

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