The assessment of climate change mitigation policies through economic modeling
depends crucially on assumptions under which technological change has been incorporated in the
model. Earlier climate-energy-economics modeling attempts heavily relied on the assumption of
exogenous technological change. In this case, technological change is a function solely of time.
However, such an approach seems insu cient, especially given developments in other elds of economic
research that have helped to explain in more detail the process of technological change.
A lot of research has been done hence on endogenizing technological change in large-scale models.
The purpose of this paper is to summarize these e orts. We describe di erent model types
and their treatment of exogenous technological change (autonomous energy e ciency improvements
and backstop technologies) and endogenous technological change (including price inducement,
learning-by-doing, investments in R & D and directed technical change). We conclude with
some open questions and suggestions for future research.
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