Date of This Version
September 2010
Abstract
This paper studies the implications for climate policy of the interactions between environmental and knowledge externalities. Using a numerical analysis performed with the hybrid integrated assessment model WITCH, extended to include mutual spillovers between the energy and the non-energy sector, we show that the combination between environmental and knowledge externalities provides a strong rationale for implementing a portfolio of policies for both emissions reduction and the internalisation of knowledge externalities. Moreover, we show that implementing technology policy as a substitute for stabilisation policy is likely to increase global emissions.
Recommended Citation
Massetti, Emanuele and Nicita, Lea, "The Optimal Climate Policy Portfolio when Knowledge Spills Across Sectors" (September 08, 2010). Fondazione Eni Enrico Mattei Working Papers. Paper 485.
https://services.bepress.com/feem/paper485
