| Name: | Description: | Size: | Format: | |
|---|---|---|---|---|
| 320.39 KB | Adobe PDF |
Authors
Advisor(s)
Abstract(s)
This paper extends the model by Smulders and de Nooij (Resour Energy Econ 25:59–79, 2003), where technical change can be biased towards labour or energy, by assuming a monopolistic union and a government which pays unemployment benefits, collects wage taxes and sells emission permits. The extended model is applied to the analysis of environmental tax reforms. A reduction in the level of energy use yields a double dividend by lowering pollution and unemployment, while temporarily inducing energy-saving technical change. It moves the economy to a new balanced growth path where unemployment is permanently lower, but long-run growth is not aff ected. A reduction in the growth rate of energy use induces a persistent bias in technical change towards labour and reduces long-run growth.
Description
Keywords
Unemployment Double dividend Directed technical change Environmental tax reform
Pedagogical Context
Citation
Kronenberg, Tobias (2010). "Energy conservation, unemployment and the direction of technical change". Portuguese Economic Journal, 9(1):1-17
Publisher
Springer Verlag