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Westudy changes in fossil fuel and,non-fossil energy use and carbon dioxide emissions induced by  carbon  taxes.  We  develop  a ,partial  energy  equilibrium  model  with  capital  and  labor  as  production factors, and endogenous technological change through learning by doing and learning through  research,  distinguishing  between  private  and  public  innovations.  Our  model  reproduces  the  learning  curves  typical  for  energy  system  engineering  models.  The  model  also  produces  an  endogenous S-curved transition from fossil fuel energy sources to non-fossil energy sources over the coming  two  centuries.  It  is  shown  that,  (i)  induced  technological  change  accelerates  the  substitution of non-fossil energyfor fossil fuels substantially. Also, (ii) a temporary carbontax h as apermanent  effect  on  the ,technological  progress  of  the  non-fossil  energy  and  advances  the  transition towards it. 1 Induced technological change under carbon taxes

Induced Technological Change Under Carbon Taxes