This paper illustrates the representation of induced technological change in the multi- regional, multi-sectoral integrated assessment model WIAGEM. The main aim of this paper is to investigate quantitatively economic impacts of climate policy measures due to induced technological changes that are considered. Improved technological innovations are triggered by increased R&D expenditures that advance ...
Environmental policies frequently target the ratio of dirty to green output within the same industry. To achieve such targets, the green sector may be subsidized or the dirty sector be taxed. We show that in a monopolistic competition setting, the two policy approaches have different welfare effects, depending on the design of the instrument (ad valorem versus unit instrument) and the initial situation ...
This paper illustrates the representation of induced technological change in the multi-regional, multi-sectoral integrated assessment model WIAGEM. The main aim of the paper is to investigate quantitatively the economic impacts of climate policy measures due to the induced technological changes that are considered. Improved technological innovations are triggered by increased R&D expenditures that ...
In October 2003, the European Union introduced a Directive which widens the scope of the EU's minimum taxation system from mineral oils to all energy products including coal, natural gas and electricity. It aims at reducing distortions that currently exist between Member States as well as between energy products. In addition, it increases previous minimum tax rates and thus the incentive to use energy ...
The German electricity market is facing two major challenges: competition and climate protection. The liberalization of the electricity sector in Europe following the directive on the single internal market is increasing competition between suppliers of electricity, while the trading in emissions certificates, which started in January 2005, aims at reducing emission of carbon dioxide. This gives a ...
Top-down computable general equilibrium (CGE) models are used extensively for analysis of energy and climate policies. Energy-intensive industries are usually represented in top-down economic models as abstract economic production functions, of the constantelasticity-of-substitution (CES) functional form. This study explores methods for improving the realism of energy-intensive industries in top-down ...