Innovation, growth, and structural change in a decarbonizing economy: a tale of two sectors.

Decarbonization can affect growth and cause structural change because some energy-related inputs have been easier to decarbonize than others, and energy use is more significant in certain sectors. This article examines these effects through a two-sector growth model with two energy-related inputs an...

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Publicado en:Oxford Economic Papers Vol. 78; no. 2; pp. 350 - 373
Autor principal: Fries, Steven
Formato: Artículo
Publicado: Oxford University Press / USA Apr2026
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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        atl: Innovation, growth, and structural change in a decarbonizing economy: a tale of two sectors.
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        au: Fries, Steven
        affil: Institute for New Economic Thinking at the Oxford Martin School, University of Oxford, Manor Road Building, Manor Road, Oxford OX1 3UQ, United KingdomOxford Net Zero, University of Oxford, Wellington Square, Oxford OX1 2JD, United Kingdom
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        United Kingdom
        Technological innovations
        Economic expansion
        Economic development
        Applied sciences
        Renewable energy sources
        Green technology
        Carbon dioxide mitigation
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          Technological innovations
          Economic expansion
          Economic development
          United Kingdom
          Applied sciences
          Renewable energy sources
          Green technology
          Carbon dioxide mitigation
      keyword:
        climate policy
        copyrightHolder:Oxford University Press
        copyrightYear:2026
        energy and growth
        inLanguage:en
        innovation policy
        low carbon growth
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        publisher:Oxford University Press
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        structural change
        technological change
        climate policy
        copyrightHolder:Oxford University Press
        copyrightYear:2026
        energy and growth
        inLanguage:en
        innovation policy
        low carbon growth
        O33
        O41
        O44
        publisher:Oxford University Press
        Q43
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        structural change
        technological change
      ab: Decarbonization can affect growth and cause structural change because some energy-related inputs have been easier to decarbonize than others, and energy use is more significant in certain sectors. This article examines these effects through a two-sector growth model with two energy-related inputs and two final goods. These inputs are produced using fossil and low-carbon capital stocks, which vary in their substitutability and use in producing final goods. A decarbonization policy encourages low-carbon inputs and directs R&D towards technology fields that are easier to decarbonize through innovation. Model calibration to the UK economy illustrates its dynamics. While much of the economy can be readily decarbonized through innovation and innovation policy, some sectors such as heavy industry face greater technological and policy challenges. These sectors would benefit from more targeted R&D support to overcome path dependencies in low-carbon innovation, enabling their decarbonization and growth to progress hand in hand.
      pubtype: Academic Journal
      doctype: Article
      src: R
    language: English
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