Directed Technical Change and the British Industrial Revolution

نویسندگان

چکیده

We build a directed technical change model where one intermediate goods sector uses fixed quantity of biomass energy (“wood”) and another coal at price, matching stylized facts for the British Industrial Revolution. Unlike previous research, we do not assume level or growth rate productivity is inherently higher in coal-using sector. Analytically, greater initial wood scarcity, relative knowledge technologies, and/or population will boost an industrial revolution, while converse may prevent forever. An with eventual dominance by sector, model’s main dynamic outcome, but inevitable if inter-good substitutability high enough. Empirical calibration 1560–1900 produces historically plausible results changes energy-related variables during industrialization, through counterfactual simulations confirms that it was growing scarcity caused resulted innovation to develop machines.

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ژورنال

عنوان ژورنال: Journal of the Association of Environmental and Resource Economists

سال: 2021

ISSN: ['2333-5955', '2333-5963']

DOI: https://doi.org/10.1086/714602