Carbon Emission Restriction, R&D Subsidy and Bias of Technological Change ——Based on the Situational Analysis of DCGE
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Abstract This paper designed simulated scenarios about carbon emission restrictions and R&D subsidy policies based on policy efforts and time of introduction. After that, we used computable general equilibrium model simulating how bias of technological change vary under different experiment policies. Some important results were achieved: First, the emission restrictions will speed up fossil fuel saving and clean energy using biased of technological change, and the introduction time has opposite effects on these two technological change. Second, subsidy policies will promote knowledge to substitute other production factors and speed up knowledge using biased of technological change in the mean time. However, higher rates of subsidy will lead to excessive subsidies, resulting in GDP loss. Third, when implementing the combined policies, capital using biased of technological change will slow down but knowledge using and fossil fuel saving biased technological change speed up. The loss of GDP will be reduced if combining policies earlier under a moderate level of subsidies rate.
2014, Vol. 31 
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