TY  - RPRT
CY  - Toulouse
ID  - publications50749
UR  - http://tse-fr.eu/pub/130495
A1  - Grimaud, André
A1  - Rouge, Luc
Y1  - 2025/04/08/
N2  - Technical progress is considered a key element in the ght against climate change. It may take the form of technological breakthroughs, that is, shocks that induce signicant leaps in the stock of knowledge. We use an endogenous growth framework with directed technical change to analyze the climate impact of such shocks. Two production subsectors coexist: one subsector is fossil-based, using a non-renewable resource, and yields carbon emissions; the other subsector uses a clean, renewable resource. At a given date, the economy benets from an exogenous technology shock. We fully characterize the general equilibrium and analyze how the shock modies the economys trajectory. The overall e¤ect on carbon emissions basically depends on the substitutability between the production subsectors, the initial state of the economy, and the nature and size of the shock. We notably show that green technology shocks induce higher short-term carbon emissions when the two subsectors are gross complements, but also in numerous cases when they are gross substitutes.
PB  - TSE Working Paper
T3  - TSE Working Paper
KW  - directed technical change
KW  - endogenous growth
KW  - technology shocks
KW  - climate change
M1  - working_paper
TI  - Technology Shocks, Directed Technical Progress and Climate Change
AV  - public
EP  - 37
ER  -