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What is Bath ERP 9422 about?

The paper develops a dynamic general equilibrium model to analyze the interaction between climate policy, industry dynamics, and the elasticity of substitution between clean and dirty energy. It finds that firm heterogeneity significantly affects energy substitution capabilities, and that stricter climate policies lead to a higher average elasticity of substitution, reducing the carbon tax needed for carbon neutrality by 35%. The model highlights the importance of considering dynamic industry responses in c

Author

ashd100

Language

EN