An innovation and climate policy model with factor-biased technological change : a small, open economy approach
Report
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http://hdl.handle.net/11250/181027Utgivelsesdato
2008Metadata
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Sammendrag
This report documents the model structure and empirical implementation
procedures of a dynamic computable general equilibrium (CGE) model that
includes induced technological change (ITC). The model is developed for analyses
of economy-wide welfare and growth impacts of innovation and greenhouse gas
abatement policy. It accounts for macroeconomic productivity and productivity
growth effects in an realistic economic and political setting, where several
simultaneous reallocations take place and interact with each other.
ITC is driven by two separate, economically motivated research and development
(R&D) activities. These activities result in new technological solutions that
increase the productivity of capital. The first activity develops general patents,
while the second is directed towards environmental technological solutions,
specified as carbon capture and storage (CCS). These activities result in new
technological solutions that increase the productivity of capital. In addition, R&D
of one firm increases the productivity of concurrent and future R&D firms, as it
contributes to the common knowledge stock of the country. Emissions of the six
Kyoto greenhouse gases are modeled in detail. The model describes the Norwegian
economy and is designed to address policy challenges of small, open countries,
where changes in international trade and competitiveness are crucial for the results
of policies, and where knowledge spillovers from abroad dominate the
technological development.
Beskrivelse
When using material from this publication,
Statistics Norway shall be quoted as the source.