Patrick Schulte

Substitution between Clean and Dirty Energy Inputs: A Macroeconomic Perspective

In macroeconomic models, the elasticity of substitution between clean and dirty energy inputs within the energy aggregate is a central parameter in assessing the necessary conditions for long-run green growth. Using new sectoral data in a panel of 26 countries, we formulate specifications of nested constant elasticity of substitution production functions that allow estimating this parameter for the first time. We present evidence that it significantly exceeds unity, a favorable condition for promoting green growth.

Elasticity of Substitution between Clean and Dirty Energy Inputs - A Macroeconomic Perspective

Recently Acemolgu, Aghion, Bursztyn and Hemous (AER 2012) formulated a model in which a high macroeconomic elasticity of substitution between clean and dirty production represents a crucial condition for green growth. Until now it has never been systematically estimated. Using a novel panel of cross-country sectoral data, we formulate specifications of nested CES production functions that allow to estimate a special case of this parameter: the elasticity of substitution between clean and dirty energy inputs. Contrary to what is expected based on the earlier interfuel substitution literature, we find evidence that this elasticity exceeds one.

Does Skill-Biased Technical Change Diffuse Internationally?

This paper studies the question whether skill-biased technical change diffuses internationally and that way contributes to the increasing relative skill demand in other countries. So far, the role of skill-biased technology diffusion has hardly been studied empirically. Using new sectoral data for a panel of 40 emerging and developed countries, 30 industries (covering manufacturing and service industries) and 13 years (1995-2007), the analysis shows that skill-biased technology diffusion is statistically and economically important in explaining skill-biased technical change. Countries further away from the skill-specific technological frontier subsequently show higher skill-specific productivity growth. For that, the bilateral distance between two countries proves to be an important mediating factor, whereas intersectoral trade linkages, so far, explain only a small part of it. The main results hold for both, developed and emerging countries.

From Less Promising to Green? Technological Opportunities and Their Role in (Green) ICT Innovation

This paper aims to shed light on the role of technological opportunities for green innovation by studying the case of Green ICT innovation. We test two hypotheses: (1) Firms active in low-opportunity technological areas are less innovative; (2) Firms active in low-opportunity technological areas are more likely to change their direction of technical change. To do so, we construct a firm-level panel data set for the years 1992-2009 combining patent data from the European Patent Office with firm-level data from the German Innovation Panel (Mannheim Innovation Panel). The results are based on dynamic count data estimation models applying General Methods of Moments estimators. Our results support our hypotheses: firms active in low-opportunity technological areas are less innovative but are more likely to switch from pure ICT innovation to Green ICT innovation.