Tools
Tools
Grimaud, André
, Lafforgue, Gilles
and Rouge, Luc
(2026)
Does the climate challenge justify degrowth ?
TSE Working Paper, n. 26-1748, Toulouse
Preview |
Text
Download (1MB) | Preview |
Abstract
Degrowth is often advocated as a response to the climate crisis, but its consistency with growth theory remains unclear. We develop an endogenous growth model of directed technical change and climate in which the economy relies on both a polluting fossil resource and a clean renewable alternative. We fully characterize the social optimum and show that accounting for climate damages may justify an initial phase of degrowth. Such a phase is more likely when fossil resources are abundant and fossil-oriented research is relatively inefficient. In all cases, long-run optimal growth remains positive.
| Item Type: | Monograph (Working Paper) |
|---|---|
| Language: | English |
| Date: | May 2026 |
| Place of Publication: | Toulouse |
| Uncontrolled Keywords: | degrowth, directed technical change, endogenous growth, social optimum, climate change. |
| JEL Classification: | O33 - Technological Change - Choices and Consequences; Diffusion Processes Q32 - Exhaustible Resources and Economic Development Q55 - Technological Innovation |
| Subjects: | B- ECONOMIE ET FINANCE |
| Divisions: | TSE-R (Toulouse) |
| Institution: | Université Toulouse Capitole |
| Site: | UT1 |
| Date Deposited: | 29 May 2026 09:23 |
| Last Modified: | 09 Jun 2026 08:52 |
| OAI Identifier: | oai:tse-fr.eu:131735 |
| URI: | https://publications.ut-capitole.fr/id/eprint/53701 |
