Löschel, Andreas; Otto, Vincent M.; Dellink, Rob B. - 2005
This paper studies energy bias in technical change. For this purpose, we develop a computable general equilibrium model … technical change, and the economy. We derive the equilibrium determinants of biased technical change and show the importance of … equilibrium bias. If the feedback effect is strong, or the substitution elasticity large, or both, our model tends to a corner …