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Technological change facing an environmental constraint : the case of France

Abstract : Today few people doubt the reality of global warming. We have understood that our economic choices and behaviour influence our environment visibly and rapidly, and see the necessity for efficient measure to reduce greenhouse gas emissions stemming from industrial production. For this reason, it is important to study the likely effects that an environmental policy may have on the economy. In this context it is important to investigate how an economy may counter the negative impacts of an environmental constraint on economic growth. In this thesis, we seek to determine whether technological progress may be a remedy to the expected dichotomy between economic growth and environmental protection. We show, through a general equilibrium model representing the French economy, how a constraint similar to the French National Allocation Plan affects the French economy when the latter's only possible reactions are substitutions between production factors. We then show how the direction of technological change can be expected to be influenced by an environmental constraint. To oversee this effect would lead to underestimating the capacity of an economy to react. Finally, we describe the effects of technological change induced by an environmental constraint in a general equilibrium framework. Technological change is here modelled as an increased demand for the intangible production factor following an environmental constraint, which leads to an increase in the efficiency of tangible production factors.
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  • HAL Id : tel-00136574, version 1



Alexandra Niez Lempp. Technological change facing an environmental constraint : the case of France. Economics and Finance. Université Panthéon-Sorbonne - Paris I, 2006. English. ⟨tel-00136574⟩



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