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Adoption Gaps of Environmental Adaptation Technologies with Public Effects

Author

Listed:
  • Angelo Antoci

    (University of Sassari)

  • Simone Borghesi

    (University of Siena
    European University Institute)

  • Giulio Galdi

    (European University Institute)

  • Sergio Vergalli

    (University of Brescia
    Fondazione Eni Enrico Mattei (FEEM))

Abstract

As the Intergovernmental Panel on Climate Change (2018) testifies, the world is a long way from halting climate change, let alone reverting it. The existence of adaptation and mitigation technologies did not prove sufficient, their adoption being respectively faulted or hindered by the presence of externalities. In this work, we study how externalities, whether positive or negative, lead the system away from Pareto-dominant (social optimum) states, towards Pareto-dominated ones. We show that adoption gaps, i.e. differences between socially optimum vs current adoption shares, of both (mal)adaptation and mitigation technologies are caused by the externalities emitted. In particular, over-adoption may occur for maladaptive technologies, whereas under-adoption may occur in case of mitigation. We employ a model with two regions at different stages of development and also derive relevant considerations on possible counterproductive effects of green policies and environmental dumping.

Suggested Citation

  • Angelo Antoci & Simone Borghesi & Giulio Galdi & Sergio Vergalli, 2022. "Adoption Gaps of Environmental Adaptation Technologies with Public Effects," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 83(2), pages 313-339, October.
    • Handle: RePEc:kap:enreec:v:83:y:2022:i:2:d:10.1007_s10640-021-00561-1
    DOI: 10.1007/s10640-021-00561-1
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    1. Che, Yuyuan & Feng, Hongli & Hennessy, David A., 2023. "Will adoption occur if a practice is win-win for profit and the environment? An application to a rancher's grazing practice choices," Ecological Economics, Elsevier, vol. 209(C).

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    More about this item

    Keywords

    Maladaptation; Mitigation; Externalities; Environmental dumping;
    All these keywords.

    JEL classification:

    • C70 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - General
    • D62 - Microeconomics - - Welfare Economics - - - Externalities
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • Q20 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - General

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