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http://hdl.handle.net/10071/8314
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Title: Quantifying distortions from pollution in a R&D endogenous growth model
Authors: Sequeira, T. N.
Ferreira-Lopes, A.
Keywords: Pollution
Environmental tax
R&D
Economic growth
Subsidies
Issue Date: 2014
Publisher: Universidad de Chile. Departamento de Economía
Abstract: In this note we study the distortions in an endogenous growth model developed by Grimaud and Tournemaine (2007), where new pieces of knowledge are produced in a R&D sector and used to reduce pollution emissions. Using this model along with a realistic calibration, we conclude that the economy strongly underinvests in R&D, such that the policy maker would need to implement a strong tax-subsidy scheme to correct it. We suggest that a subsidy to human capital can also decrease the gap between market and optimal allocations.
Description: WOS:000336635700005 (Nº de Acesso Web of Science)
Peer reviewed: Sim
URI: https://ciencia.iscte-iul.pt/public/pub/id/12800
http://hdl.handle.net/10071/8314
ISSN: 0304-2758
Publisher version: The definitive version is available at: http://dx.doi.org/10.4067/S0718-52862014000100005
Appears in Collections:BRU-RI - Artigo em revista científica internacional com arbitragem científica

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