Tell us how you used this resourceSuggest a green growth resource

Browse by:

Sector

Country

Region

Theme

Organisation

Type

You are here

Home > Databases > Library > Carbon Taxes, Path Dependency and Directed Technical Change: Evidence from the Auto Industry

Carbon Taxes, Path Dependency and Directed Technical Change: Evidence from the Auto Industry

November 2012
Authors: 
Philippe Aghion, Antoine Dechezlepretre, David Hemous, Ralf Martin, John Van Reenen
Source: 
Centre for Climate Change Economics and Policy (CCCEP), University of Leeds, Grantham Research Institute on Climate Change and the Environment, London School of Economics and Political Science
Can directed technical change be used to combat climate change? This paper constructs new firm-level panel data on auto industry innovation distinguishing between “dirty” (internal combustion engine) and “clean” (e.g. electric and hybrid) patents across 80 countries over several decades. It shows that firms tend to innovate relatively more in clean technologies when they face higher tax-inclusive fuel prices. Furthermore, there is path dependence in the type of innovation both from aggregate spillovers and from the firm’s own innovation history. Using this model this paper simultaes the increases in carbon taxes needed to allow clean to overtake dirty technologies.
Download
Sectors: 
Transport
Themes: 
Technology and Innovation, Climate Change
Key search terms: 
innovation, taxes, energy, baseline, biomass combustion, industry, combustion engines, auto industry, hydrogen, electricity generation, jobs

Related Research

June 2012

Inclusive Green Growth: The Pathway to Sustainable Development

World Bank Group

As the global population heads toward 9 billion by 2050, decisions made today will lock countries into growth patterns that may or may not be sustainable in the future.

June 2012

Facilitating Green Growth in Africa: Perspectives from the African Development Bank

African Development Bank (AfDB)

This paper explores the value of green growth from the perspective of sustainable development practitioners. First, it provides a brief definition of green growth, and why the concept is relevant for meeting Africa’s challenges.

March 2018

Green Economy Industry and Trade Analysis: Assessing South Africa's Potential

Partnership for Action on Green Economy (PAGE), Trade & Industrial Policy Strategies (TIPS)
This analysis Green Economy Industry and Trade Analysis: Assessing South Africa's Potential focuses on the development of new trade opportunities for green industries in South Africa, both for import substitution and for exports.
August 2017

The Local Business Case for Climate Action: A Practical Framework for Climate Action in Cities

Climate and Development Knowledge Network (CDKN)

Cities are responsible for up to 70% of global greenhouse gas emissions, therefore climate change needs to be resolved in cities.