Abstract
Numerous climate policy modeling studies that feature endogenous technical change (TC) have emerged in the literature, but their endogenous specifications tend to diverge with little consensus on the underlying process. To reconcile disparate modeling methods, this paper revisits the mechanism of endogenous TC in climate policy analysis by developing a conceptual framework that captures three endogenous processes: R & D inducement, knowledge creation, and production technical change. I also provide methodological implications on how to incorporate this mechanism into a multi-sector computable general equilibrium (CGE) model, particularly the treatment on cross-sector knowledge spillovers and R & D crowding-out. Building on this generalized framework, climate policy modeling that seeks to incorporate endogenous TC can hopefully be supported in future studies.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
