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Ferreira-Lopes, A., Sequeira, T. N. & Roseta-Palma, C. (2013). On the Effect of Technological Progress on Pollution: An Overlooked Distortion in Endogenous Growth. Oxford Economic Papers. 65 (2), 394-416
A. M. Lopes et al., "On the Effect of Technological Progress on Pollution: An Overlooked Distortion in Endogenous Growth", in Oxford Economic Papers, vol. 65, no. 2, pp. 394-416, 2013
@article{lopes2013_1732354841888, author = "Ferreira-Lopes, A. and Sequeira, T. N. and Roseta-Palma, C.", title = "On the Effect of Technological Progress on Pollution: An Overlooked Distortion in Endogenous Growth", journal = "Oxford Economic Papers", year = "2013", volume = "65", number = "2", doi = "10.1093/oep/gps019", pages = "394-416", url = "http://oep.oxfordjournals.org/content/early/2012/03/20/oep.gps019" }
TY - JOUR TI - On the Effect of Technological Progress on Pollution: An Overlooked Distortion in Endogenous Growth T2 - Oxford Economic Papers VL - 65 IS - 2 AU - Ferreira-Lopes, A. AU - Sequeira, T. N. AU - Roseta-Palma, C. PY - 2013 SP - 394-416 SN - 0030-7653 DO - 10.1093/oep/gps019 UR - http://oep.oxfordjournals.org/content/early/2012/03/20/oep.gps019 AB - We derive a model of endogenous growth with physical capital, human capital and technological progress through quality-ladders. We introduce welfare-decreasing pollution in the model, which can be reduced through the development of cleaner technologies. From the quantitative analysis of the model, we show clear evidence that the externality from technological progress to pollution considered in this model is sufficiently strong to induce underinvestment in R&D as an outcome of the decentralized equilibrium. An important policy implication of the main result of this article is that it reinforces the case for R&D subsidies. ER -