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Technology Treaties And Climate Change

Author

Listed:
  • HANS GERSBACH

    (CER-ETH – Center of Economic, Research at ETH Zurich and CEPR, Zürichbergstrasse 18, 8092 Zurich, Switzerland)

  • MARIE-CATHERINE RIEKHOF

    (Institute for Agricultural Economics, Center for Ocean and Society, Christian-Albrechts-University Kiel, Olshausenstrae 40, 24118 Kiel, Germany)

Abstract

We introduce an international technology treaty (‘Tech Treaty’) that couples the funding of research for a more advanced abatement technology with an international emissions permit market. While each country decides on domestic permit issuance, a fraction of these permits is auctioned by an international agency. Auction revenues scale up license revenues for the innovators of abatement technologies. We show that such a treaty increases innovations and decreases emissions under plausible conditions compared to an emissions trading system without additional technology agreement. Finally, we discuss how a Tech Treaty may inspire next steps in existing technology programs.

Suggested Citation

  • Hans Gersbach & Marie-Catherine Riekhof, 2022. "Technology Treaties And Climate Change," Climate Change Economics (CCE), World Scientific Publishing Co. Pte. Ltd., vol. 13(02), pages 1-42, May.
  • Handle: RePEc:wsi:ccexxx:v:13:y:2022:i:02:n:s2010007822500026
    DOI: 10.1142/S2010007822500026
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    Cited by:

    1. Gersbach, Hans & Riekhof, Marie-Catherine, 2021. "Permit markets, carbon prices and the creation of innovation clusters," Resource and Energy Economics, Elsevier, vol. 65(C).
    2. Takashima, Nobuyuki, 2023. "Self-enforcing international environmental agreements with third-party organizations: Initial payment, technological development, and refunding," Economics Letters, Elsevier, vol. 228(C).

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    More about this item

    Keywords

    Climate change mitigation; technology promotion; R&D; international emissions permit markets; international treaty;
    All these keywords.

    JEL classification:

    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives

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