Otto, Vincent M.; Löschel, Andreas; Reilly, John - Fondazione ENI Enrico Mattei (FEEM) - 2006
technical change and the economy. We find the cost-effective climate policy to include a combination of R&D subsidies and CO2 … emission constraints, although R&D subsidies raise the shadow value of the CO2 constraint (i.e. CO2 price) because of a strong … rebound effect from stimulating innovation. Furthermore, we find that CO2 constraints differentiated toward CO2-intensive …