In this paper we present a sector-based approach to investigate whether green growth - combining economic growth with environmental sustainability - is feasible. Our approach considers the relation between on the one hand carbon dioxide emissions per dollar of output (what we will call carbon...

Climate policy has been mainly studied with economic models that assume representative, rational agents. However, it aims at changing behavior associated with carbon-intensive goods that are often subject to bounded rationality and social preferences, such as status and imitation. Here we use a...