determinant such as the observed decline in the relative price of new capital goods, or the change in production technology … market augmented by a CES production function that allows firms to substitute between capital and labor at varying degrees … production. We find that the declining relative price of capital and the increase in factor substitutability each causes the …

determinant such as the observed decline in the relative price of new capital goods, or the change in production technology … market augmented by a CES production function that allows firms to substitute between capital and labor at varying degrees … production. We find that the declining relative price of capital and the increase in factor substitutability each causes the …

is implemented. However, our results also indicate a trade-off between environmental and profit gains, since aggregate CO …