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The impact of capital trade and technological spillovers on climate policies

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  • Leimbach, Marian
  • Baumstark, Lavinia
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    Abstract

    In this paper, we present an intertemporal optimization model that is designed to analyze climate policy scenarios within a globalized world which is characterized by the existence of technological spillovers. We consider a type of technological spillovers that is bound to bilateral capital trade. Importing foreign capital that increases the efficiency of energy use represents a mitigation option that extends the commonly modeled portfolio. The technical details of the model are presented in this paper. The model is solved numerically. First model applications highlight the differences between climate policy analyses which either take or do not take technological spillovers into account. In the final part, we apply the model to investigate first-mover advantages and commitment incentives in climate policy scenarios. The existence of both is supported by simulation results.

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    Bibliographic Info

    Article provided by Elsevier in its journal Ecological Economics.

    Volume (Year): 69 (2010)
    Issue (Month): 12 (October)
    Pages: 2341-2355

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    Handle: RePEc:eee:ecolec:v:69:y:2010:i:12:p:2341-2355

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    Web page: http://www.elsevier.com/locate/ecolecon

    Related research

    Keywords: Climate policy Multi-region model Technological spillovers International trade;

    References

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    Citations

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    Cited by:
    1. Wei Jin & ZhongXiang Zhang, 2014. "On the Mechanism of International Technology Diffusion for Energy Productivity Growth," Working Papers 2014.40, Fondazione Eni Enrico Mattei.
    2. Enrica De Cian & Fabio Sferra & Massimo Tavoni, 2013. "The Influence of Economic Growth, Population, and Fossil Fuel Scarcity on Energy Investments," Working Papers 2013.59, Fondazione Eni Enrico Mattei.
    3. Hübler, Michael & Pothen, Frank, 2013. "The optimal tariff in the presence of trade-induced productivity gains," ZEW Discussion Papers 13-103, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
    4. Hübler, Michael & Baumstark, Lavinia & Leimbach, Marian & Edenhofer, Ottmar & Bauer, Nico, 2012. "An integrated assessment model with endogenous growth," ZEW Discussion Papers 12-054, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
    5. Wei Jin & ZhongXiang Zhang, 2014. "Explaining the Slow Pace of Energy Technological Innovation: Why Market Conditions Matter?," Working Papers 2014.18, Fondazione Eni Enrico Mattei.
    6. Hübler, Michael, 2011. "Technology diffusion under contraction and convergence: A CGE analysis of China," Energy Economics, Elsevier, vol. 33(1), pages 131-142, January.
    7. Enrica De Cian & Ramiro Parrado, 2012. "Technology Spillovers Embodied in International Trade: Intertemporal, regional and sectoral effects in a global CGE," Working Papers 2012.27, Fondazione Eni Enrico Mattei.
    8. Richard Perkins & Eric Neumayer, 2012. "Do recipient country characteristics affect international spillovers of CO 2-efficiency via trade and foreign direct investment?," Climatic Change, Springer, vol. 112(2), pages 469-491, May.
    9. Parrado, Ramiro & De Cian, Enrica, 2014. "Technology spillovers embodied in international trade: Intertemporal, regional and sectoral effects in a global CGE framework," Energy Economics, Elsevier, vol. 41(C), pages 76-89.
    10. Anderson, Blake & M'Gonigle, Michael, 2012. "Does ecological economics have a future?," Ecological Economics, Elsevier, vol. 84(C), pages 37-48.
    11. Wei Jin, 2012. "International Knowledge Spillover and Technology Externality: Why Multilateral R&D Coordination Matters for Global Climate Governance," CAMA Working Papers 2012-53, Centre for Applied Macroeconomic Analysis, Crawford School of Public Policy, The Australian National University.

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