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Carbon Taxes, Path Dependency, and Directed Technical Change: Evidence from the Auto Industry

2016· article· en· 1,361 citations· W3021625863 on OpenAlex· 10.1086/684581

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A frame that forgets how it found something cannot be audited. These are the routes that admitted this work.

Canadian affiliationAn author listed a Canadian institution. This is the only route the usual frame has.

Machine scores (provisional)

Baseline scores from an immature model (maturity gate not passed, 7 training rounds). Scores rank; they never assert a category.

The two teacher heads of the student model, read on this work. A score orders the frame for review; it never asserts a category, and the validation status ships verbatim with every row.

Opus teacher head0.127
GPT teacher head0.281
Teacher spread
0.153 · how far apart the two teachers sit on this one work
Validation status
score_only:v0-immature-baseline · verbatim from the scoring run: score_only means the number may rank works, and no category label ships from it

Abstract

Can directed technical change be used to combat climate change? We construct new firm-level panel data on auto industry innovation distinguishing between “dirty” (internal combustion engine) and “clean” (e.g., electric, hybrid, and hydrogen) patents across 80 countries over several decades. We show that firms tend to innovate more in clean (and less in dirty) technologies when they face higher tax-inclusive fuel prices. Furthermore, there is path dependence in the type of innovation (clean/dirty) both from aggregate spillovers and from the firm’s own innovation history. We simulate the increases in carbon taxes needed to allow clean technologies to overtake dirty technologies.

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The record

Venue
Journal of Political Economy
Topic
Climate Change Policy and Economics
Field
Economics, Econometrics and Finance
Canadian institutions
Canadian Institute for Advanced Research
Funders
Economic and Social Research CouncilGrantham Foundation for the Protection of the Environment
Keywords
Clean technologyPath dependencyTechnical changeAuto industryCarbon taxIndustrial organizationPanel dataClimate changePath (computing)Face (sociological concept)EconomicsConstruct (python library)Technological changeBusinessNatural resource economicsEconomic systemComputer scienceEconometricsEngineeringMacroeconomics
Has abstract in OpenAlex
yes