Endogenizing Technological Change: Matching Empirical Evidence to Modeling Needs

33 Pages Posted: 27 Jun 2007 Last revised: 29 Jul 2012

See all articles by William A. Pizer

William A. Pizer

Duke University

David Popp

Syracuse University - Department of Public Administration; National Bureau of Economic Research (NBER)

Date Written: April 2007

Abstract

Given that technologies to significantly reduce fossil fuel emissions are currently unavailable or only available at high cost, technological change will be a key component of any long-term strategy to reduce greenhouse gas emissions. In light of this, the amount of research on the pace, direction, and benefits of environmentally-friendly technological change has grown dramatically in recent years. This research includes empirical work estimating the magnitude of these effects, and modeling exercises designed to simulate the importance of endogenous technological change in response to climate policy. Unfortunately, few attempts have been made to connect these two streams of research. This paper attempts to bridge that gap. We review both the empirical and modeling literature on technological change. Our focus includes the research and development process, learning by doing, the role of public versus private research, and technology diffusion. Our goal is to provide an agenda for how both empirical and modeling research in these areas can move forward in a complementary fashion. In doing so, we discuss both how models used for policy evaluation can better capture empirical phenomena, and how empirical research can better address the needs of models used for policy evaluation.

Suggested Citation

Pizer, William A. and Popp, David C., Endogenizing Technological Change: Matching Empirical Evidence to Modeling Needs (April 2007). NBER Working Paper No. w13053. Available at SSRN: https://ssrn.com/abstract=986903

William A. Pizer

Duke University ( email )

100 Fuqua Drive
Durham, NC 27708-0204
United States

David C. Popp (Contact Author)

Syracuse University - Department of Public Administration ( email )

Syracuse, NY
United States
315-443-2482 (Phone)
315-443-1075 (Fax)

HOME PAGE: http://faculty.maxwell.syr.edu/dcpopp/index.html

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

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