RT Journal Article T1 Directed Technical Change and Environmental Quality. A1 Afonso, Óscar A1 Fonseca, Liliana A1 Ferreira-de-Magalhaes, Rosinda Manuela A1 Vasconcelos, Paulo B. K1 Medio ambiente - Protección AB We propose a directed technical change model with two sectors, clean anddirty, to analyze the impact of the degree of substitutability between sectorsand the degree of scale effects on the environmental quality. The technologicalknowledge is biased towards the clean sector; i.e., the environmental quality isimproved whenever the elasticity of substitution between inputs in both sectorsincreases and, along with that, the economy: (i) is rich in renewable capital,(ii) has higher relative supply of clean labor under scale effects, and (iii) enjoyshigher relative R&D productivity in the clean sector. The improvement in theenvironmental quality benefits the welfare. Moreover, the growth rate is higherin the presence of scale effects. PB Springer Nature YR 2020 FD 2020 LK https://hdl.handle.net/10630/37598 UL https://hdl.handle.net/10630/37598 LA eng NO https://openpolicyfinder.jisc.ac.uk/id/publication/8162 DS RIUMA. Repositorio Institucional de la Universidad de Málaga RD 3 mar 2026