Title: Chapter 4: Long-term investment and endogenous technical progress: dynamic and vintage-type models

Authors: Hans W. Gottinger

Addresses: Department of Meteorology, Istanbul Technical University, Maslak, 80626 Istanbul, Turkey

Abstract: In this chapter, we set out to model the economic aspects of the CO₂ problem under endogenous technical progress (Romer, 1990). Such models appear more natural and provide increased flexibility and realism for policy-making purposes. We begin with a comparison of the models with those developed in Chapter 2. The analysis considers possible long-run equilibrium solutions and possible approach paths to equilibrium. We present a solution for a constant, long-term growth path of the model and an examination of the effects of parameters on the ratio of ‘knowledge’ to capital and on the growth rate along this path.

Keywords: greenhouse gases; CO₂ emissions; economic modelling; energy modelling.

DOI: 10.1504/IJEP.2002.000684

International Journal of Environment and Pollution, 2002 Vol.17 No.5/6, pp.485-508

Published online: 14 Jul 2003 *

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