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Dirty And Clean Technologies

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  • DAS GUPTA, SUPRATIM

Abstract

Pollution from fossil fuel use is a global problem. Studies have shown that a worsening of environmental quality has adverse effects on worker productivity and health. In this study, there is an inexhaustible natural resource that deteriorates environmental quality and affects productivity. There also exists a perfect substitute clean backstop, which is initially too costly to operate and whose costs can be reduced through investments in knowledge. Depending on the endowment of environmental quality, the optimal solution shows that the planner should only use the resource or only the backstop until a constant steady state is reached in which the polluting resource and backstop are used in fixed proportions. We show that investments in alternative technologies from the very beginning can help an economy make the eventual switch to clean energy sources, thereby attaining better environmental quality.

Suggested Citation

  • Das Gupta, Supratim, 2015. "Dirty And Clean Technologies," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 47(1), pages 123-145, February.
    • Handle: RePEc:cup:jagaec:v:47:y:2015:i:01:p:123-145_00
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    Cited by:

    1. Chiara Ravetti & Tania Theoduloz & Giulia Valacchi, 2020. "Buy Coal or Kick-Start Green Innovation? Energy Policies in an Open Economy," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 77(1), pages 95-126, September.
    2. Shaker, Saber Adly, 2019. "Can Clean Technology Exports Affect CO2 Emissions for Partners? Evidence from China," MPRA Paper 96867, University Library of Munich, Germany.
    3. Supratim Das Gupta, 2015. "Dynamics of Switching from Polluting Resources to Green Technologies," International Journal of Energy Economics and Policy, Econjournals, vol. 5(4), pages 1109-1124.

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