Bosetti, Valentina; Tavoni, Massimo - Fondazione ENI Enrico Mattei (FEEM) - 2007
This paper analyses optimal investments in innovation when dealing with a stringent climate target and with the …-free technology whose cost depends on R&D investments. To better represent the process of technological progress, we assume that R … technological advancement yields higher investments in innovation and lower policy costs. We then confirm the results via a …