This paper investigates R&D investment pathways aligned with climate stabilization goals, linking two integrated assessment models (WITCH and GEM-E3). Focusing on five low-carbon technologies and energy efficiency, the study finds that timely R&D investment lowers mitigation costs and boosts employment. Achieving the 2°C (1.5°C) target requires an 18% (64%) increase in cumulative low-carbon R&D investment by mid-century. Carbon revenues are sufficient to finance this additional R&D and reduce distortionary taxation, further enhancing job creation.
