Overcoming the Carbon Trap: Climate Policy and Technology Tipping
dc.contributor.author
Bretscher, Lucas
dc.contributor.author
Komarov, Evgenij
dc.contributor.author
Leuthard, Matthias
dc.date.accessioned
2023-11-30T09:22:30Z
dc.date.available
2023-11-29T15:22:50Z
dc.date.available
2023-11-30T09:22:30Z
dc.date.issued
2023-11
dc.identifier.uri
http://hdl.handle.net/20.500.11850/644504
dc.identifier.doi
10.3929/ethz-b-000644504
dc.description.abstract
We construct an overlapping generations model in which the choice between dirty and clean technology hinges on the economy’s capital stock, susceptible to climate-induced depreciation. The process of capital accumulation contributes to environmental emissions, yet their intensity can be mitigated through a shift to cleaner production methods. The tipping point of technological transition is en dogenously determined, leading to a diverse range of potential long-term outcomes shaped by capital endowment, pollution intensity, climate vulnerability, and clean factor productivity. Our analysis reveals the possibility of an economy converging into a “carbon trap”, characterized by a sustained equilibrium marked by elevated pollution and diminished income, despite the feasibility of pursuing green growth. Additionally, we present optimal policy measures and simulations that highlight the temporal disparities between the socially optimal timing for transitioning to green technology and the timing dictated by market forces. Finally, to account for the high upfront costs of starting clean production, we extend the model by including a non-convexity in the production structure of the clean technology.
en_US
dc.format
application/pdf
en_US
dc.language.iso
en
en_US
dc.publisher
ETH Zurich, Center of Economic Research (CER-ETH)
en_US
dc.rights.uri
http://rightsstatements.org/page/InC-NC/1.0/
dc.subject
Carbon trap
en_US
dc.subject
Technology tipping
en_US
dc.subject
Climate damages
en_US
dc.subject
Climate policy
en_US
dc.title
Overcoming the Carbon Trap: Climate Policy and Technology Tipping
en_US
dc.type
Working Paper
dc.rights.license
In Copyright - Non-Commercial Use Permitted
ethz.journal.title
Economics Working Paper Series
ethz.journal.volume
23/386
en_US
ethz.size
71 p.
en_US
ethz.grant
Global Excellence in mOdeling Climate and Energy Policies
en_US
ethz.publication.place
Zurich
en_US
ethz.publication.status
published
en_US
ethz.leitzahl
ETH Zürich::00002 - ETH Zürich::00012 - Lehre und Forschung::00007 - Departemente::02120 - Dep. Management, Technologie und Ökon. / Dep. of Management, Technology, and Ec.::03635 - Bretschger, Lucas (emeritus) / Bretschger, Lucas (emeritus)
en_US
ethz.grant.agreementno
870245
ethz.grant.fundername
EC
ethz.grant.funderDoi
10.13039/501100000780
ethz.grant.program
H2020
ethz.date.deposited
2023-11-29T15:22:51Z
ethz.source
FORM
ethz.eth
yes
en_US
ethz.availability
Open access
en_US
ethz.rosetta.installDate
2023-11-30T09:22:31Z
ethz.rosetta.lastUpdated
2024-02-03T07:46:53Z
ethz.rosetta.versionExported
true
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