List Of contents

Table of Contents
1. Introduction . 1
2. Key concepts . 2
2.1. Fundamentals of Environmental Economics . 2
2.2. The Economics of Technological Change . 3
2.3 Implications for Environmental and Technology Policy 4
3. Microeconomics: Innovation 6
3.1 Induced Innovation . 7
3.1.1. Empirical evidence on induced innovation in pollution abatement and energy
conservation 7
3.1.2. Innovation and the Choice of Policy Instrument 10
3.1.3. What Can Technological Change Economists Contribute? 16
3.2. The Impacts of Technological Change 17
3.2.1 Empirical Evidence 18
3.2.2. Estimates of Technological Impact Using Learning-by-Doing 19
3.2.3. Government R&D . 21
3.2.4. What Can Technological Change Economists Contribute? 22
4. Microeconomics: Diffusion 23
4.1 Diffusion within Countries . 23
4.1.1. Theoretical Analyses . 24
4.1.2. Empirical Studies 26
4.1.2.1 Environmental Policy and Adoption . 26
4.1.2.2. Are there Adoption Market Failures? 30
4.1.3 What Can Technological Change Economists Contribute? . 33
4.2 Diffusion Across Countries. 33
4.2.1. What Can Technological Change Economists Contribute? 38
5. Technological Change in Aggregate Energy-Environment Models . 39
5.1 Exogenous Technological Change 40
5.2 Endogenous Technological Change 40
5.2.1 Direct Price-Induced Technological Change . 42
5.2.2 R&D-induced technological change 42
5.2.2.1 Theoretical Models of R&D-Induced Technological Change 43
5.2.2.2 Numerical Models of R&D-Induced Technological Change . 45
5.2.3 Learning-Induced Technological Change 47
5.3 What Can Technological Change Economists Contribute? 48
6. Conclusions . 49
References . 52