Replication data for: Climate Policy and Innovation: A Quantitative Macroeconomic Analysis

Principal Investigator(s):  View help for Principal Investigator(s) Stephie Fried

Version:  View help for Version V1

Name File Type Size Last Modified
  AEJMacro-2015-0289.R2_additional_materials 10/26/2021 02:39:PM
LICENSE.txt text/plain 14.6 KB 12/07/2019 09:27:AM

Project Citation: 

Fried, Stephie. Replication data for: Climate Policy and Innovation: A Quantitative Macroeconomic Analysis. Nashville, TN: American Economic Association [publisher], 2018. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2019-12-07. https://doi.org/10.3886/E116407V1

Project Description

Summary:  View help for Summary A carbon tax can induce innovation in green technologies. I evaluate the quantitative impact of this channel in a dynamic, general equilibrium model with endogenous innovation in fossil, green, and nonenergy inputs. I discipline the parameters using evidence from historical oil shocks, after which both energy prices and energy innovation increased substantially. I find that a carbon tax induces large changes in innovation. This innovation response increases the effectiveness of the policy at reducing emissions, resulting in a 19.2 percent decrease in the size of the carbon tax required to reduce emissions by 30 percent in 20 years.

Scope of Project

JEL Classification:  View help for JEL Classification
      H23 Taxation and Subsidies: Externalities; Redistributive Effects; Environmental Taxes and Subsidies
      O31 Innovation and Invention: Processes and Incentives
      Q41 Energy: Demand and Supply; Prices
      Q48 Energy: Government Policy
      Q54 Climate; Natural Disasters and Their Management; Global Warming
      Q55 Environmental Economics: Technological Innovation
      Q58 Environmental Economics: Government Policy
Geographic Coverage:  View help for Geographic Coverage United States
Data Type(s):  View help for Data Type(s) aggregate data


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