How do climate policies affect the pace and direction of technical change?
12:00 - 13:00
James Lennox is an Australian researcher at FEEM in Venice until 30 November 2014 under a European Union FP7 Marie Curie International Incoming Fellowship. He was most recently working for Landcare Research in Auckland, New Zealand. The aim of his research project at FEEM is to improve theoretical and empirical understanding of how climate and related policies may affect the pace and direction of market-driven innovation and international diffusion of technologies.
The project has three main objectives. The first objective is to develop a suitable micro-founded theoretical framework, building on the recent work of Aghion, Acemoglu and others. The second objective is to investigate the effects of emissions pricing, R&D subsidies and other policies within this framework, using a combination of theoretical analysis and numerical simulations. In particular, we are concerned to account for empirically important phenomenon including capital stock dynamics, international trade and international knowledge flows. The third objective is to develop and test micro-founded specifications of endogenously directed technical change within a large-scale general equilibrium model, such as ICES.
This presentation gives an introduction to and overview of the planned research. For those working on related topics, it may be an opportunity to make suggestions on the proposed lines of enquiry and methodologies, and hopefully, to identify some areas of mutual interest.