Climate Economics Seminar: Where Does Energy R&D Come From? A First Look at Crowding Out from Environmentally-Friendly R&D
Date(s): June 17, 2008 (2 pm)
Location: Room 4144, EPA West
Presenter: David C. Popp (Syracuse University) and Richard Newell (Duke University)
Description: Recent efforts to endogenize technological change in climate policy models demonstrate the importance of accounting for the opportunity cost of climate R&D investments. Because the social returns to R&D investments are typically higher than the social returns to other types of investment, any new climate mitigation R&D that comes at the expense of other R&D investment may dampen the overall gains from induced technological change. Unfortunately, there has been little empirical work to guide modelers as to the potential magnitude of such crowding out effects. This presentation is a first attempt to address this question. In it, the authors consider the private opportunity costs of climate R&D, asking whether an increase in climate R&D represents new R&D spending, or whether some (or all) of the additional climate R&D comes at the expense of other R&D.
Presentation Slides (PDF) (PDF, 630 kb, About PDF)