To mitigate climate change in an accelerated time frame, more research is needed to understand how to achieve effective large-scale diffusion of low-carbon innovations. The conceptualization of sectoral socio-technical system transitions requires extending beyond an economic and technological...

We borrow standard assumptions from the non-renewable-resource-taxation and from the directed-technical-change literatures, to take a full account of the incentives to perform R&D activities in a dirty-resource sector and in a clean-resource-substitute sector. We show that a gradual rise in the...