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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.

In most applications, separability and aggregation assumptions are made that make it possible to represent the economy’s production technology with a production function, Y =f(K,L,E;t), (2) where Y is now a scalar measure of aggregateoutput(for example,grossdomestic prod-= + + +,

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