Title: Pollution-reducing and resource-saving technological progress

Authors: Dagmar Nelissen, Till Requate

Addresses: Department of Economics, Kiel University, Olshausenstr. 40, 24098 Kiel, Germany. ' Department of Economics, Kiel University, Olshausenstr. 40, 24098 Kiel, Germany

Abstract: We survey the theoretical literature on pollution-reducing and resource-saving technological progress, differentiating between microeconomic partial equilibrium models and endogenous growth models. The microeconomic models serve to investigate incentives to develop and adopt environmentally friendlier technologies under different policy tools, commitment strategies and market structures. Here price-based instruments usually outperform command and control policies. In most growth models a trade-off between growth rates and environmental quality occurs. Moreover, typically three market imperfections arise, market power for new products, R&D spillovers and pollution. These imperfections can be mitigated by subsidies on output and R&D effort, and taxes on emissions.

Keywords: pollution reduction; technological progress; resource saving; environmental innovation; endogenous growth models; emission taxes; tradable permits; microeconomic models; growth rates; environmental quality; output subsidies; environmental pollution; agriculture.

DOI: 10.1504/IJARGE.2007.012141

International Journal of Agricultural Resources, Governance and Ecology, 2007 Vol.6 No.1, pp.5 - 44

Published online: 24 Jan 2007 *

Full-text access for editors Access for subscribers Purchase this article Comment on this article