Di Maria, CorradoCorradoDi MariaValente, SimoneSimoneValente2009-02-112009-02-112005, Euro2005http://hdl.handle.net/10197/858Paper presented at the 14th Annual Conference of the European Association of Environmental and Resource Economists, Bremen, Germany 23 - 26 June 2005This paper analyzes the consequences of unilateral climate policy in the presence of directed technical change. We develop a dynamic two-country model in which two otherwise identical countries differ in their environmental policy: one of the countries enforces a (binding) cap on emissions while the other does not. Focusing on carbon leakage, we show how allowing for directed technical change significantly modifies the results obtained otherwise4304 bytesapplication/pdfenClimate changeEndogenous technical changeInternational tradeEnvironmental policyTechnological innovationsInternational tradeConference Publicationhttps://creativecommons.org/licenses/by-nc-sa/1.0/