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Can directed technical change be used to combat climate change? We construct new firm-level panel data on auto industry innovation distinguishing between "dirty" (internal combustion engine) and "clean" (e.g. electric and hybrid) patents across 80 countries over several decades. We show that...
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the world output loss that materialized during the great recession would have been 13% lower in absence of GFU shocks. We … after GFU shocks, the larger the world output contraction is. …
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achieves set-identiÖcation via a combination of narrative, sign, ratio, and correlation restrictions. We Önd that the world …, the larger the world output contraction is. …
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