scholarly journals Directed Technical Change and Economic Growth Effects of Environmental Policy

2016 ◽  
Author(s):  
Peter K. Kruse-Andersen
Keyword(s):  
Economic Growth ◽  
Environmental Policy ◽  
Technical Change ◽  
Growth Effects ◽  
Directed Technical Change

A NOTE ON SKILL-STRUCTURE SHOCKS, THE SHARE OF THE HIGH-TECH SECTOR, AND ECONOMIC GROWTH DYNAMICS

2016 ◽  
Vol 20 (7) ◽  
pp. 1906-1923 ◽  
Author(s):  
Pedro Mazeda Gil ◽  
Oscar Afonso ◽  
Paulo B. Vasconcelos
Keyword(s):  
Economic Growth ◽  
Technical Change ◽  
Growth Dynamics ◽  
High Tech ◽  
Economic Growth Rate ◽  
High Tech Sector ◽  
Directed Technical Change ◽  
Endogenous Growth Model ◽  
Positive Shock ◽  
Knowledge Bias

By means of an endogenous growth model of directed technical change with vertical and horizontal R&D, we study a transitional-dynamics mechanism that is consistent with the changes in the shares of the high- versus the low-tech sectors found in recent European data. Under the hypothesis of a positive shock in the proportion of high-skilled labor, the technological-knowledge bias channel leads to unbalanced sectoral growth with a noticeable shift of resources across sectors. A calibration exercise suggests that the model is able to account for up to from 50 to about 100 percent of the increase in the share of the high-tech sector observed in the data from 1995 to 2007. However, the model predicts that the dynamics of the share of the high-tech sector has no significant impact on the dynamics of the economic growth rate.

Environmental Regulation, Directed Technical Change, and Economic Growth: Theoretic Model and Evidence from China

2019 ◽  
Vol 42 (5-6) ◽  
pp. 519-549 ◽  
Author(s):  
Juan Tang ◽  
Shihu Zhong ◽  
Guocheng Xiang
Keyword(s):  
Economic Growth ◽  
Environmental Pollution ◽  
Environmental Regulation ◽  
Technical Change ◽  
Energy Production ◽  
Path Dependence ◽  
Clean Energy ◽  
Theoretic Model ◽  
Directed Technical Change ◽  
Production Technologies

Can environmental regulation be used to promote directed technical change and economic growth simultaneously? We construct an endogenous economic growth model that includes environmental regulation, the extent of environmental pollution, and economic performance in a general equilibrium framework. We show that in the absence of government intervention, environmental pollution will not automatically disappear as economic growth increases. Furthermore, “threshold constraints” result from “path dependence” in the type of innovation; only when the rate of carbon tax and carbon reduction subsidy reaches a certain extent will individuals (or producers) redirect technical change toward “clean” energy production technologies innovation and away from “dirty” energy production technologies. Our article also discloses the intrinsic principle and micromechanism of environmental regulation to promote economic growth and finds that strict environmental regulation will both significantly promote the evolving labor division in clean energy production technologies innovation and achieve the benefits of improved average labor productivity in the production sector and the market size of goods, so that the benefit exceeds the switching cost.

Impacts of Environmental Regulation on Sustainable Economic Growth

2018 ◽  
Vol 9 (9) ◽  
pp. 749-773
Author(s):  
Jonathan Fisher
Keyword(s):  
Economic Growth ◽  
Environmental Regulation ◽  
Technical Change ◽  
Best Practice ◽  
Environmental Regulations ◽  
The European Union ◽  
Porter Hypothesis ◽  
The United Kingdom ◽  
Environment Agency ◽  
Sustainable Economic Growth

There is considerable concern and debate about the economic impacts of environmental regulations. Jonathan Fisher, former Economics Manager at the Environment Agency in England and Wales, reviews the available evidence on this subject. Section 2 presents estimates of the costs and benefits of environmental regulations. Section 3 examines the impacts of environmental regulations on economic growth, innovation and technical change as well as impacts on competitiveness and any movement of businesses to less pollution havens. He questions call for greater certainty regarding future environmental regulations, whereas in fact there should be calls for less uncertainty. This section then suggests how this could be achieved. This section then finishes with an overview of the available evidence. This includes an examination of the Porter Hypothesis that environmental regulations can trigger greater innovation that may partially or more than fully offset the compliance costs. Section 4 then sets out principles for how better environmental regulation can improve its impacts on sustainable economic growth and illustrates how the European Union (EU) Water Framework Directive is a good example of the application of these principles in practice. Section 5 reviews current and recent political perspectives regarding developments in environmental regulations across the EU and shows how the United Kingdom (UK) has successfully positively managed to influence such developments so that EU environmental regulations now incorporate many of these principles to improve their impacts on economic growth. Section 5.1 then examines the implications of Brexit for UK environmental regulations. Finally, Section 6 sets out some best practice principles to improve the impacts of environmental regulation on sustainable economic growth, innovation and technical change.

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