Energy Biased Technical Change. A CGE Analysis

V.M. Otto, A. Löschel, R.B. Dellink

Research output: Book/ReportReportAcademic


This paper studies energy bias in technical change. For this purpose, we develop a computable general equilibrium model that builds on endogenous growth models. The model explicitly captures links between energy, the rate and direction of technical change, and the economy. We derive the equilibrium determinants of biased technical change and show the importance of feedback in technical change, substitution possibilities between final goods, and general-equilibrium effects for the equilibrium bias. If the feedback effect is strong, or the substitution elasticity large, or both, our model tends to a corner solution in which only technologies are developed that are appropriate for production of non-energy intensive goods
Original languageEnglish
Place of PublicationMannheim
PublisherCentre for European Economic Research ZEW
Number of pages26
Publication statusPublished - 2005

Publication series

NameDiscussion Paper
PublisherCentre for European Economic Research ZEW

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    Otto, V. M., Löschel, A., & Dellink, R. B. (2005). Energy Biased Technical Change. A CGE Analysis. (Discussion Paper; No. 05-32). Centre for European Economic Research ZEW.