Working Paper: CEPR ID: DP16840
Authors: Tim Besley; Torsten Persson
Abstract: 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.
Keywords: green innovation; civil society; motivated agents
JEL Codes: O31; L23; D91
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| motivated scientists (C91) | lower costs of innovation in green sectors (Q55) |
| lower costs of innovation in green sectors (Q55) | higher growth rate of green goods (O44) |
| motivated scientists (C91) | innovation dynamics (O31) |
| innovation dynamics (O31) | cultural dynamics among consumers (D16) |
| cultural dynamics among consumers (D16) | speed of convergence to a green future (O44) |
| higher growth rate of green goods (O44) | more consumers adopt green preferences (Q52) |
| more consumers adopt green preferences (Q52) | more innovation in green technologies (Q55) |
| more innovation in green technologies (Q55) | increased green consumption (O44) |
| increased green consumption (O44) | further innovation in green sectors (Q55) |
| motivated scientists (C91) | societal shifts towards sustainability (Q01) |