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dirty innovation and production; (ii) optimal policy involves both “carbon taxes” and research subsidies, so that excessive … the switch to clean innovation under laissez-faire when the two inputs are substitutes. Under reasonable parameter values … ; Directed Technological Change ; Innovation …
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This paper discusses the growth model with environmental constraints recently presented in (Acemoglu et al., 2011) which focuses on the redirection of technical change by climate policies with research subsidies and a carbon tax. First, Acemoglu et al.'s model and chosen parameters yield...
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can be achieved with temporary taxation of dirty innovation and production; (ii) optimal policy involves both "carbon … exhaustible resource in dirty input production helps the switch to clean innovation under laissez-faire when the two inputs are …
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