{"id":122018,"date":"2024-01-23T07:32:34","date_gmt":"2024-01-23T06:32:34","guid":{"rendered":"https:\/\/www.wifo.ac.at\/publication\/122018\/"},"modified":"2024-11-07T05:13:07","modified_gmt":"2024-11-07T04:13:07","slug":"investment-specific-versus-process-innovation-in-a-cge-model-of-environmental-policy-wwwforeurope-working-paper-no-85","status":"publish","type":"publication","link":"https:\/\/www.wifo.ac.at\/en\/publication\/122018\/","title":{"rendered":"Investment-specific versus Process Innovation in a CGE Model of Environmental Policy. WWWforEurope Working Paper No. 85"},"content":{"rendered":"","protected":false},"featured_media":0,"template":"","class_list":["post-122018","publication","type-publication","status-publish","hentry"],"acf":{"subtitle":"","text":"The European Union has implemented demand push and technology pull policies to foster innovation on the energy and resource efficiency of capital goods. The state of the art of general equilibrium modelling applied to environmental policy rarely treats product and process innovation separately and product quality is, in the best case, exogenous. We develop a dynamic multi-sector CGE model that distinguishes between R&amp;D-based process innovation for all firms, endogenous product innovation in the capital goods sector and adoption decisions with respect to the installation of new capital vintages in the rest of the economy. Our results support the previous literature in finding that aggregate innovation declines following an energy tax but whereas process innovation is reduced, product innovation actually rises. We find that demand pull policies are less effective than product-related R&amp;D subsidies to reduce aggregate energy intensity.","onlinedate":"2015-04-01 12:00:00","lang":"English","publication_series":"WWWforEurope: Welfare, Wealth and Work for Europe","publication_date":"20150201","publication_date_year":"","publication_date_full":false,"publication_num_pages":"41","keywords":"[]","jelcodes":"[]","related_publications":"[]","pdf":356927,"zip":null,"link":"","monthly_report":false,"monthly_report_main":false,"monthly_report_volume":"","monthly_report_pages":"","monthly_report_pages_sort":"0","issue":"","journal":"","publisher":"","invisible":false,"external":false,"embargo_date":"2015-04-01 12:00:00","types":[81966],"research_groups":[3655],"collaboration":"","persons":[12809,14247],"persons_data":"[{\"personId\":12809,\"personName\":\"Claudio Baccianti\",\"organisationNames\":[]},{\"personId\":14247,\"personName\":\"Andreas L\u00f6schel\",\"organisationNames\":[\"ZEW\"]}]","clients":[10692,10704,10722,32851],"subclients":[],"partners":[],"topics":[],"host_publication_title":"","host_publication_subtitle":"","place_of_publication":"","host_publication_editors":"[]","type_description":"","output_media":"","chapter":"","article_number":"","citations":"{\"apa\":\"<div class=\\\"rendering rendering_researchoutput  rendering_researchoutput_apa rendering_bookanthology rendering_apa rendering_bookanthology_apa\\\">Baccianti, C., &amp; L\u00f6schel, A. (2015). <span><em>Investment-specific versus Process Innovation in a CGE Model of Environmental Policy. WWWforEurope Working Paper No. 85<\\\/em><\\\/span>. (WWWforEurope: Welfare, Wealth and Work for Europe). Centre for European Economic Research. <a onclick=\\\"window.open(this.href, '_blank','noopener,noreferrer'); return false;\\\" href=\\\"https:\\\/\\\/www.wifo.ac.at\\\/wwa\\\/pubid\\\/57893\\\" class=\\\"link\\\"><span>https:\\\/\\\/www.wifo.ac.at\\\/wwa\\\/pubid\\\/57893<\\\/span><\\\/a><\\\/div>\",\"vancouver\":\"<div class=\\\"rendering rendering_researchoutput  rendering_researchoutput_vancouver rendering_bookanthology rendering_vancouver rendering_bookanthology_vancouver\\\">Baccianti C, L\u00f6schel A. <span class=\\\"title\\\"><span>Investment-specific versus Process Innovation in a CGE Model of Environmental Policy. WWWforEurope Working Paper No. 85<\\\/span><\\\/span>. Centre for European Economic Research; 2015.<\\\/div>\",\"bibtex\":\"<div class=\\\"rendering rendering_researchoutput  rendering_researchoutput_bibtex rendering_bookanthology rendering_bibtex rendering_bookanthology_bibtex\\\"><div>@book{ad1dad417052445aaf4425d98bbf5802,<\\\/div><div>  title     = \\\"Investment-specific versus Process Innovation in a CGE Model of Environmental Policy. WWWforEurope Working Paper No. 85\\\",<\\\/div><div>  abstract  = \\\"The European Union has implemented demand push and technology pull policies to foster innovation on the energy and resource efficiency of capital goods. The state of the art of general equilibrium modelling applied to environmental policy rarely treats product and process innovation separately and product quality is, in the best case, exogenous. We develop a dynamic multi-sector CGE model that distinguishes between R\\\\&amp;D-based process innovation for all firms, endogenous product innovation in the capital goods sector and adoption decisions with respect to the installation of new capital vintages in the rest of the economy. Our results support the previous literature in finding that aggregate innovation declines following an energy tax but whereas process innovation is reduced, product innovation actually rises. We find that demand pull policies are less effective than product-related R\\\\&amp;D subsidies to reduce aggregate energy intensity.\\\",<\\\/div><div>  author    = \\\"Claudio Baccianti and Andreas L{\\\\\\\"o}schel\\\",<\\\/div><div>  note      = \\\"Investment-specific versus Process Innovation\\\",<\\\/div><div>  year      = \\\"2015\\\",<\\\/div><div>  month     = feb,<\\\/div><div>  language  = \\\"English\\\",<\\\/div><div>  series    = \\\"WWWforEurope: Welfare, Wealth and Work for Europe\\\",<\\\/div><p>}<\\\/p><\\\/div>\",\"ris\":\"<div class=\\\"rendering rendering_researchoutput  rendering_researchoutput_ris rendering_bookanthology rendering_ris rendering_bookanthology_ris\\\"><p>TY  - BOOK<\\\/p><p>T1  - Investment-specific versus Process Innovation in a CGE Model of Environmental Policy. WWWforEurope Working Paper No. 85<\\\/p><p>AU  - Baccianti, Claudio<\\\/p><p>AU  - L\u00f6schel, Andreas<\\\/p><p>N1  - Investment-specific versus Process Innovation<\\\/p><p>PY  - 2015\\\/2<\\\/p><p>Y1  - 2015\\\/2<\\\/p><p>N2  - The European Union has implemented demand push and technology pull policies to foster innovation on the energy and resource efficiency of capital goods. The state of the art of general equilibrium modelling applied to environmental policy rarely treats product and process innovation separately and product quality is, in the best case, exogenous. We develop a dynamic multi-sector CGE model that distinguishes between R&amp;D-based process innovation for all firms, endogenous product innovation in the capital goods sector and adoption decisions with respect to the installation of new capital vintages in the rest of the economy. Our results support the previous literature in finding that aggregate innovation declines following an energy tax but whereas process innovation is reduced, product innovation actually rises. We find that demand pull policies are less effective than product-related R&amp;D subsidies to reduce aggregate energy intensity.<\\\/p><p>AB  - The European Union has implemented demand push and technology pull policies to foster innovation on the energy and resource efficiency of capital goods. The state of the art of general equilibrium modelling applied to environmental policy rarely treats product and process innovation separately and product quality is, in the best case, exogenous. We develop a dynamic multi-sector CGE model that distinguishes between R&amp;D-based process innovation for all firms, endogenous product innovation in the capital goods sector and adoption decisions with respect to the installation of new capital vintages in the rest of the economy. Our results support the previous literature in finding that aggregate innovation declines following an energy tax but whereas process innovation is reduced, product innovation actually rises. We find that demand pull policies are less effective than product-related R&amp;D subsidies to reduce aggregate energy intensity.<\\\/p><p>M3  - Study<\\\/p><p>T3  - WWWforEurope: Welfare, Wealth and Work for Europe<\\\/p><p>BT  - Investment-specific versus Process Innovation in a CGE Model of Environmental Policy. WWWforEurope Working Paper No. 85<\\\/p><p>ER  - <\\\/p><\\\/div>\"}","scientific_assistance":"[]","scientific_review":"[]","version":"","release_date":null,"expiration_date":null,"surveyor":"","research_assistance":"","edv":"","additional_info_de":"","additional_info_en":""},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v28.0 (Yoast SEO v28.0) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Investment-specific versus Process Innovation in a CGE Model of Environmental Policy. 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