Existing literature supports combining green research and development(R&D)subsidies and carbon taxation for economic sustainability,but often assumes an exogenous labor supply This overlooks key interactions,espec...Existing literature supports combining green research and development(R&D)subsidies and carbon taxation for economic sustainability,but often assumes an exogenous labor supply This overlooks key interactions,especially regarding existing subsidies for traditional R&D sectors,common in developing countries focused on growth.This paper introduces a varietyexpansion endogenous growth model featuring endogenous labor supply and stochastic components.It analyzes how labor supply endogeneity and the level of existing brown sector support influence the optimal mix of green R&D subsidies and carbon taxation,deriving closed-form solutions:when labor supply is endogenous,the relationship between the optimal carbon tax and green R&D subsidies can be complementary or substitutive,depending on the level of labor disutility.It also investigates how the optimal climate policy mix should change when a social planner emphasizes a faster green transition.The model is calibrated using data from China,and numerical results validate the paper's theoretical insights.展开更多
基金National Social Science Fund of China Major Project(No.23&ZD093)the National Natural Science Foundation of China(No.72203022)Co-funded Project of Guangdong Philosophy and Social Sciences(No.GD24XLJ01).
文摘Existing literature supports combining green research and development(R&D)subsidies and carbon taxation for economic sustainability,but often assumes an exogenous labor supply This overlooks key interactions,especially regarding existing subsidies for traditional R&D sectors,common in developing countries focused on growth.This paper introduces a varietyexpansion endogenous growth model featuring endogenous labor supply and stochastic components.It analyzes how labor supply endogeneity and the level of existing brown sector support influence the optimal mix of green R&D subsidies and carbon taxation,deriving closed-form solutions:when labor supply is endogenous,the relationship between the optimal carbon tax and green R&D subsidies can be complementary or substitutive,depending on the level of labor disutility.It also investigates how the optimal climate policy mix should change when a social planner emphasizes a faster green transition.The model is calibrated using data from China,and numerical results validate the paper's theoretical insights.
