General Equilibrium Effects of Green Technological Progress

Date

2018

Authors

Van Long, N.
Stähler, F.

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Journal article

Citation

Environmental and Resource Economics, 2018; 69(1):159-166

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Ngo Van Long, Frank Stähler

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Abstract

This paper demonstrates that technological progress in production of renewable energy can influence the extraction path of fossil fuels indirectly by a change in the equilibrium interest rate. We show in a simple model that the indirect effect can be so strong that firstperiod or even aggregate extraction levels rise with green technological progress, contrary to popular expectations.

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Published online: 30 September 2016

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© Springer Science+Business Media Dordrecht 2016

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