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Using an endogenous Schumpeterian R&D growth model, this paper intends to analyse how international trade of intermediate goods can affect the structure and diffusion of technological knowledge between ecological and dirty countries. Each country is assumed to have different environmental quality levels and different available technological knowledge and to be able of conducting R&D activities...
This paper develops a Schumpeterian R&D growth model with endogenous directed technological change. The aim is to study the contributions of environmental policies to the production of ecological goods, when consumers are indifferent between ecological and dirty goods. By solving the transitional dynamics numerically and by removing the scale effects, it is shown that, through the price channel,...
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