eprintid: 50749 rev_number: 13 eprint_status: archive userid: 1482 importid: 105 dir: disk0/00/05/07/49 datestamp: 2025-04-07 07:36:15 lastmod: 2025-04-16 09:37:38 status_changed: 2025-04-16 09:37:38 type: monograph metadata_visibility: show creators_name: Grimaud, André creators_name: Rouge, Luc creators_idrefppn: 070371601 creators_idrefppn: 070371474 creators_affiliation: Toulouse School of Economics creators_affiliation: TBS Business School creators_halaffid: 1002422;81148 creators_halaffid: 141693 title: Technology Shocks, Directed Technical Progress and Climate Change ispublished: pub subjects: subjects_ECO abstract: 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. date: 2025-04-08 date_type: published publisher: TSE Working Paper official_url: http://tse-fr.eu/pub/130495 faculty: tse divisions: tse keywords: directed technical change keywords: endogenous growth keywords: technology shocks keywords: climate change language: en has_fulltext: TRUE subjectsJEL: JEL_O33 subjectsJEL: JEL_Q32 subjectsJEL: JEL_Q54 subjectsJEL: JEL_Q55 view_date_year: 2025 full_text_status: public monograph_type: working_paper series: TSE Working Paper volume: 25-1633 place_of_pub: Toulouse pages: 37 institution: Université Toulouse Capitole department: Toulouse School of Economics book_title: TSE Working Paper oai_identifier: oai:tse-fr.eu:130495 harvester_local_overwrite: department harvester_local_overwrite: creators_name harvester_local_overwrite: pending harvester_local_overwrite: creators_idrefppn harvester_local_overwrite: creators_halaffid harvester_local_overwrite: abstract harvester_local_overwrite: place_of_pub harvester_local_overwrite: institution harvester_local_overwrite: pages harvester_local_overwrite: hal_id harvester_local_overwrite: hal_version harvester_local_overwrite: hal_url harvester_local_overwrite: hal_passwd harvester_local_overwrite: date harvester_local_overwrite: subjectsJEL harvester_local_overwrite: keywords oai_lastmod: 2025-04-11T13:18:16Z oai_set: tse site: ut1 hal_id: hal-05022723 hal_passwd: pmpc3n3g hal_version: 1 hal_url: https://hal.science/hal-05022723 citation: Grimaud, AndréIdRef and Rouge, LucIdRef (2025) Technology Shocks, Directed Technical Progress and Climate Change. TSE Working Paper, n. 25-1633, Toulouse document_url: https://publications.ut-capitole.fr/id/eprint/50749/1/wp_tse_1633.pdf