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Technological change, energy, environment and economic growth in Japan

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  • Besstremyannaya, Galina
  • Dasher, Richard
  • Golovan, Sergei

Abstract

A considerable amount of research has shown that a carbon tax combined with research subsidies may be regarded as optimal policy for encouraging the spread of low-carbon technologies for the benefit of society. The paper exploits the macroeconomic approach of endogenous growth models with technological change in order to make a comparative assessment of the impact of such policy measures on economic growth in the US and Japan in the medium and long term. Our estimates reveal several important differences between Japanese and US energy firms: lower elasticity of the innovation production function in R&D expenditure, lower probability of radical innovation, and predominance of dirty technologies in Japan. This may explain our quantitative findings of stronger reliance on carbon tax in Japan as opposed to research subsidies in the US.

Suggested Citation

  • Besstremyannaya, Galina & Dasher, Richard & Golovan, Sergei, 2019. "Technological change, energy, environment and economic growth in Japan," Ruhr Economic Papers 797, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    • Handle: RePEc:zbw:rwirep:797
    DOI: 10.4419/86788925
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    References listed on IDEAS

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    1. Juan Uribe-Toril & José Luis Ruiz-Real & Juan Milán-García & Jaime de Pablo Valenciano, 2019. "Energy, Economy, and Environment: A Worldwide Research Update," Energies, MDPI, vol. 12(6), pages 1-19, March.

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    More about this item

    Keywords

    endogenous growth; technological change; innovation; carbon tax; energy;
    All these keywords.

    JEL classification:

    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy
    • Q49 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Other

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