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Climate change—environmental and technology policies in a strategic context

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  • Alistair Ulph

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  • David Ulph
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    Abstract

    There are a number of features of climate change which make it one of the most challenging problems confronting policy makers and policy analysts. In this paper we consider three such features: (i) climate change is a global pollutant so there are strategic interactions between governments over climate policy; (ii) cutting greenhouse gas emissions can have significant cost effects across a number of sectors of the economy, raising concerns about the implications of climate change policy on competitive advantage; (iii) the long-time scales on which climate change operates means that an important dimension of climate change policy is policy towards R&D to cut the costs of dealing with climate change. In Ulph and Ulph (1996) [Ulph A, Ulph D (1996) In: Carraro C, Katsoulacos Y, Xepapadeas A (eds) Environmental policy and market structure. Kluwer, Dordrecht, pp 181–208] we presented a model to analyse these issues, but considered only environmental policies. In this paper we extend that analysis to allow for both a richer set of policy instruments (environmental and technology policies) and a richer strategic context. Copyright Springer Science+Business Media, Inc. 2007

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    File URL: http://hdl.handle.net/10.1007/s10640-007-9123-6
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    Bibliographic Info

    Article provided by European Association of Environmental and Resource Economists in its journal Environmental and Resource Economics.

    Volume (Year): 37 (2007)
    Issue (Month): 1 (May)
    Pages: 159-180

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    Handle: RePEc:kap:enreec:v:37:y:2007:i:1:p:159-180

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    Web page: http://www.springerlink.com/link.asp?id=100263

    Related research

    Keywords: Climate change; Environmental and technology policies; Strategic output effect; Environmental spillover investment effect; Information sharing asymmetries;

    References

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    1. J. Neary, 2006. "International Trade and the Environment: Theoretical and Policy Linkages," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 33(1), pages 95-118, 01.
    2. Pearce, David W, 1991. "The Role of Carbon Taxes in Adjusting to Global Warming," Economic Journal, Royal Economic Society, vol. 101(407), pages 938-48, July.
    3. Barbara J. Spencer & James A. Brander, 1983. "International R&D Rivalry and Industrial Strategy," NBER Working Papers 1192, National Bureau of Economic Research, Inc.
    4. Ulph, Alistair & Ulph, David, 1994. "The Optimal Time Path of a Carbon Tax," Oxford Economic Papers, Oxford University Press, vol. 46(0), pages 857-68, Supplemen.
    5. Ben Groom & Cameron Hepburn & Phoebe Koundouri & David Pearce, 2005. "Declining Discount Rates: The Long and the Short of it," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 32(4), pages 445-493, December.
    6. Golombek Rolf & Hoel Michael, 2006. "Second-Best Climate Agreements and Technology Policy," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 6(1), pages 1-30, January.
    7. Stephen Smith & Joseph Swierzbinski, 2007. "Assessing the performance of the UK Emissions Trading Scheme," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 37(1), pages 131-158, May.
    8. Katsoulacos, Yannis & Ulph, David, 1998. "Endogenous Spillovers and the Performance of Research Joint Ventures," Journal of Industrial Economics, Wiley Blackwell, vol. 46(3), pages 333-57, September.
    9. Lori Bennear & Robert Stavins, 2007. "Second-best theory and the use of multiple policy instruments," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 37(1), pages 111-129, May.
    10. Golombek, Rolf & Hoel, Michael, 2004. "Climate Agreements and Technology Policy," Memorandum 11/2004, Oslo University, Department of Economics.
    11. David Pearce, 2003. "The Social Cost of Carbon and its Policy Implications," Oxford Review of Economic Policy, Oxford University Press, vol. 19(3), pages 362-384.
    12. Samuel Fankhauser & Richard Tol & DAVID Pearce, 1997. "The Aggregation of Climate Change Damages: a Welfare Theoretic Approach," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 10(3), pages 249-266, October.
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    Cited by:
    1. Alfred Endres & Bianca Rundshagen, 2013. "Incentives to Diffuse Advanced Abatement Technology Under the Formation of International Environmental Agreements," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 56(2), pages 177-210, October.
    2. Alfred Endres & Tim Friehe, 2011. "The Monopolistic Polluter under Environmental Liability Law: Incentives for Abatement and R&D," CESifo Working Paper Series 3649, CESifo Group Munich.
    3. Alfred Endres, 2008. "Ein Unmöglichkeitstheorem für die Klimapolitik?," Perspektiven der Wirtschaftspolitik, Verein für Socialpolitik, vol. 9(3), pages 350-382, 08.
    4. Hattori, Keisuke, 2011. "Optimal Environmental Policy under Monopolistic Provision of Clean Technologies," MPRA Paper 28837, University Library of Munich, Germany.
    5. Frank Convery, 2007. "Making a difference — how environmental economists can influence the policy process — a case study of David W Pearce," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 37(1), pages 7-32, May.
    6. Hattori, Keisuke, 2010. "Firm Incentives for Environmental R&D under Non-cooperative and Cooperative Policies," MPRA Paper 24754, University Library of Munich, Germany.
    7. Alfred Endres & Tim Friehe, 2012. "Generalized Progress of Abatement Technology: Incentives Under Environmental Liability Law," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 53(1), pages 61-71, September.

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