Kan koldioxidskatt generera ekonomisk tillväxt?
(2022) NEKH02 20221Department of Economics
- Abstract
- The connection between economic growth and climate change has been a basis for discussion for a long time, and it is well-known that measures need to be taken to stop global warming and the destruction of the environment. How to proceed and at what pace have also been a subject for debate, since many actions in favor of the climate will slow down the production, and thus, hamper the growth of the economy. The complexity lies in letting economies grow at the same time as the environmental destruction stops. This paper aims to investigate how a carbon tax that is reinvested in a subsidy for research and development (R&D) focused on green innovations will change both the economy and the environment. The analysis is based on a model for... (More)
- The connection between economic growth and climate change has been a basis for discussion for a long time, and it is well-known that measures need to be taken to stop global warming and the destruction of the environment. How to proceed and at what pace have also been a subject for debate, since many actions in favor of the climate will slow down the production, and thus, hamper the growth of the economy. The complexity lies in letting economies grow at the same time as the environmental destruction stops. This paper aims to investigate how a carbon tax that is reinvested in a subsidy for research and development (R&D) focused on green innovations will change both the economy and the environment. The analysis is based on a model for endogenous technological change, in which technology depends on R&D. The model also includes emissions as something affecting GDP negatively. The study is made through simulations with the purpose of estimating how GDP and the environment will change due to different tax rates, and how well the tax can be transformed into R&D. The results show that a tax reinvested in green R&D can lead to both economic growth and reduced emissions, provided that the tax is high and the transformation to R&D is successful. (Less)
- Popular Abstract
- The connection between economic growth and climate change has been a basis for discussion for a long time, and it is well-known that measures need to be taken to stop global warming and the destruction of the environment. How to proceed and at what pace have also been a subject for debate, since many actions in favor of the climate will slow down the production, and thus, hamper the growth of the economy. The complexity lies in letting economies grow at the same time as the environmental destruction stops. This paper aims to investigate how a carbon tax that is reinvested in a subsidy for research and development (R&D) focused on green innovations will change both the economy and the environment. The analysis is based on a model for... (More)
- The connection between economic growth and climate change has been a basis for discussion for a long time, and it is well-known that measures need to be taken to stop global warming and the destruction of the environment. How to proceed and at what pace have also been a subject for debate, since many actions in favor of the climate will slow down the production, and thus, hamper the growth of the economy. The complexity lies in letting economies grow at the same time as the environmental destruction stops. This paper aims to investigate how a carbon tax that is reinvested in a subsidy for research and development (R&D) focused on green innovations will change both the economy and the environment. The analysis is based on a model for endogenous technological change, in which technology depends on R&D. The model also includes emissions as something affecting GDP negatively. The study is made through simulations with the purpose of estimating how GDP and the environment will change due to different tax rates, and how well the tax can be transformed into R&D. The results show that a tax reinvested in green R&D can lead to both economic growth and reduced emissions, provided that the tax is high and the transformation to R&D is successful. (Less)
Please use this url to cite or link to this publication:
http://lup.lub.lu.se/student-papers/record/9083098
- author
- Rydin, Julia LU
- supervisor
- organization
- course
- NEKH02 20221
- year
- 2022
- type
- M2 - Bachelor Degree
- subject
- keywords
- Economic Growth, Endogenous Technological Change, Climate Change, Environmental Taxes and Subsidies, Environment and Economic Growth
- language
- Swedish
- id
- 9083098
- date added to LUP
- 2022-10-10 09:06:30
- date last changed
- 2022-10-10 09:06:30
@misc{9083098,
abstract = {{The connection between economic growth and climate change has been a basis for discussion for a long time, and it is well-known that measures need to be taken to stop global warming and the destruction of the environment. How to proceed and at what pace have also been a subject for debate, since many actions in favor of the climate will slow down the production, and thus, hamper the growth of the economy. The complexity lies in letting economies grow at the same time as the environmental destruction stops. This paper aims to investigate how a carbon tax that is reinvested in a subsidy for research and development (R&D) focused on green innovations will change both the economy and the environment. The analysis is based on a model for endogenous technological change, in which technology depends on R&D. The model also includes emissions as something affecting GDP negatively. The study is made through simulations with the purpose of estimating how GDP and the environment will change due to different tax rates, and how well the tax can be transformed into R&D. The results show that a tax reinvested in green R&D can lead to both economic growth and reduced emissions, provided that the tax is high and the transformation to R&D is successful.}},
author = {{Rydin, Julia}},
language = {{swe}},
note = {{Student Paper}},
title = {{Kan koldioxidskatt generera ekonomisk tillväxt?}},
year = {{2022}},
}