Free DP Download 1 April 2022- Science as Civil Society: Implications for a Green Transition
Timothy J. Besley, Torsten Persson CEPR Discussion Paper No. 16840 | December 2021
When scientists care about how they deploy their skills, this influences the relative cost of innovating in green sectors. We study the effects of motivated science in a simple model, where innovation is directed towards green or brown sectors with the latter polluting the environment. Innovation thus determines the relative growth rate for green goods. When we combine the resulting innovation dynamics with cultural dynamics among consumers, the influence of science is extended further. It can now increase the speed of convergence to a green future and may even change the direction of a society's path. Key activities that are (partly) value driven may thus be an important aspect of market economies.
You can now listen to a podcast where Tim Besley tells Tim Phillips about this research.