Directed technical change, environmental sustainability, and population growth

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Population growth has two potentially counteracting effects on pollution emissions: (i) more people imply more production and thereby more emissions, and (ii) more people imply a larger research capacity which might reduce the emission intensity of production, depending on the direction of research. This study investigates how to achieve a given climate goal in the presence of these two effects. A growth model featuring both directed technical change and population growth is developed. The model allows for simultaneous research in polluting and non-polluting technologies. Both analytical and numerical results indicate that population growth is a burden on the environment, even when all research efforts are directed toward non-polluting technologies. Thus, research subsidies alone cannot ensure environmental sustainability. Instead, the analysis highlights the importance of carbon taxes for climate change mitigation.

Original languageEnglish
Article number102885
JournalJournal of Environmental Economics and Management
Volume122
Number of pages24
ISSN0095-0696
DOIs
Publication statusPublished - Oct 2023

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Publisher Copyright:
© 2023 The Author(s)

    Research areas

  • Climate change, Directed technical change, Endogenous growth, Environmental policy, Environmental sustainability, Population growth

ID: 370216598