The paper develops a new type of computable general equilibrium (CGE) model in which growth is fully endogenous, based on the increasing specialization of sector-specific capital varieties. The model is used to simulate the effects of carbon policies on consumption, welfare, and sectoral...

The paper develops a new type of CGE model to predict the effects of carbon policies on consumption, welfare, and sectoral development in the long run. Growth is fully endogenous, based on increasing specialization in capital varieties, and specic in each sector of the economy. The benchmark...

The paper investigates the long-run consequences of a phase-out of nuclear energy for the Swiss economy. We apply the CITE model, a CGE model with fully endogenous growth, and complement it with a bottom-up model. We find that the nuclear phase-out can be achieved at relatively low costs, even...

The paper applies a theoretical model with increasing capital varieties to study the impact of energy on growth. It translates a multisectoral framework version to a computable general equilibrium (CGE) model of the Swiss economy. We study the impacts of a policy aiming at enabling the economy...

Energy price shocks pose sudden challenges to economies. This paper examines how oil price shocks have influenced the U.S. economy over the last decades and especially focuses on the productivity slowdown in the years following an oil price shock. We extend the existing literature by considering...

Computable general equilibrium models simulate the reaction of industries on carbon taxes. Their results differ strongly on the assumption of the underlying technologies. This paper compares two models and emphasizes the differences between their approaches to technology. The first model is the...

In this paper, we use a CGE model with endogenous growth to study the interplay between environmental regulation, innovation and sectoral growth. We find that a stringent reduction target for carbon emissions combined with a CO2-tax leads to structural changes. Under the assumption of a...

Production often causes pollution as a by-product.Once pollution problems become too severe, regulation is introduced by political authorities which forces the economy to make a transition to cleaner production processes.We model this transition as a change in "general purpose technology" (GPT)...

Traditional resource economics has been criticised for assuming too high elasticities of substitution, not observing material balance principles and relying too much on planner solutions to obtain long-term growth.By analysing a multi-sector R&D based endogenous growth model with exhaustible...