Environmental Regulation Stringency and Allocation between R&D and Physical Capital: A Two-Engine Growth Model
2018/07/31
研討會日期 : 2018-07-31
時間 : 14:30
主講人 : Professor Chien-Yu Huang (黃千祐)
主持人 : Professor Wan-Jung Cheng
地點 : Conference Room B110
演講者簡介 : Professor Huang received his Ph.D. in Economics from North Carolina State University, Raleigh in 2012. He is currently an Associate Professor at Nanjing Audit University. His primary research fields are International Finance, Macroeconomics; Economic Growth and secondary are Applied Econometrics and Industrial Organization.
演講摘要 : This paper investigates environmental regulations in an endogenous growth model that features two engines of growth perpetual capital and innovation growth. Provided that dirty inputs and capital are sufficiently complementary, it is found that a stringent environmental policy (a higher pollution tax) leads to a sectoral reallocation from the dirty to clean sector, decreasing the capital growth but increasing the innovation growth. Such a “green growth” leads to an inverted-U relationship between the overall GDP growth and environmental policy. There exists a double-dividend in terms of not only improving the environment (the environmental green dividend) but also in-creasing economic growth and social welfare (the non-environmental blue dividend). Our numerical analysis shows that an environmental regulation is more likely to obtain the non-environmental blue dividend in growth and welfare, if (i) the innovation sector, relative to the capital sector, is more productive, (ii) capital and polluting inputs are technically less complementary, or (iii) the goods market is more competitive. The calibration results support the existence of the double-dividend under a wide range of plausible parameter values in the US economy.
