Defensive hiring of researchers by incumbent firms with monopsony power reduces creative destruction. This mechanism helps explain the simultaneous rise in R&D spending and decline in TFP growth in the US economy over recent decades. We develop a simple model highlighting the critical role of...

We study clean energy production subsidies in a quantitative climate-economy model. Clean energy production subsidies decrease carbon emissions if and only if they lower the marginal product of dirty energy. The constrained-efficient production subsidy equals the marginal external cost of dirty...