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TECHNOLOGICAL CHANGE AND THE ENVIRONMENT

Chapter 11 TECHNOLOGICAL CHANGE AND THE ENVIRONMENTADAM B. JAFFED epartment of Economics, Brandeis University andNational Bureau of Economic Research, Waltham, MA 02454-9110, USARICHARD G. NEWELLR esources for the Future, Washington, DC 20036, USAROBERT N. STAVINSJohn F. Kennedy School of Government, Harvard University, Cambridge, MA 02138, USA andResources for the Future, Washington, DC 20036, USAC ontentsAbstract462 Keywords4621. Introduction4632. Fundamental concepts in the economics of TECHNOLOGICAL Schumpeter and the gale of creative Production functions, productivity growth, and biased TECHNOLOGICAL TECHNOLOGICAL CHANGE and endogenous economic growth4683.

Ch. 11: Technological Change and the Environment 463 1. Introduction In the last decade, discussions of environmental economics and policy have become increasingly permeated by issues related to technological change. An understanding of the process of technological change is important for two broad reasons. First, the envi-

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