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International Cooperation on Climate-Friendly Technologies

Author

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  • Rolf Golombek
  • Michael Hoel

Abstract

We examine international cooperation on technological development as a supplement to, or an alternative to, international cooperation on emission reductions. R&D should be increased beyond the non-cooperative level if (i) the technology level in one country is positively affected by R&D in other countries, (ii) the domestic carbon tax is lower than the Pigovian level, or (iii) the domestic carbon tax is set directly through an international tax agreement. A second-best technology agreement has higher R&D, higher emissions, or both compared with the first-best-outcome. The second-best subsidy always exceeds the subsidy under no international R&D cooperation. Further, when the price of carbon is the same in the second-best technology agreement and in the case without R&D cooperation, welfare is highest, R&D is highest and emissions are lowest in the second-best R&D agreement.

Suggested Citation

  • Rolf Golombek & Michael Hoel, 2009. "International Cooperation on Climate-Friendly Technologies," CESifo Working Paper Series 2677, CESifo.
    • Handle: RePEc:ces:ceswps:_2677
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    Cited by:

    1. Emilson C.D. Silva & Chikara Yamaguchi, 2018. "Overlapping Climate Clubs under Transaction Costs," CESifo Working Paper Series 7319, CESifo.
    2. Jin, Wei, 2016. "International technology diffusion, multilateral R&D coordination, and global climate mitigation," Technological Forecasting and Social Change, Elsevier, vol. 102(C), pages 357-372.
    3. Marian Leimbach & Niklas Roming & Gregor Schwerhoff & Anselm Schultes, 2016. "Development perspectives of Sub-Saharan Africa under climate policies," EcoMod2016 9336, EcoMod.
    4. Michael Funke & Marc Gronwald, 2009. "A Convex Hull Approach to Counterfactual Analysis of Trade Openness and Growth," Quantitative Macroeconomics Working Papers 20906, Hamburg University, Department of Economics.
    5. Basak Bayramoglu & Jean-François Jacques & Sylvaine Poret, 2023. "Nutrition and Climate Policies in the European Union: Friends or Enemies?," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 86(4), pages 807-849, December.
    6. Heyen, Daniel, 2016. "Strategic conflicts on the horizon: R&D incentives for environmental technologies," LSE Research Online Documents on Economics 68104, London School of Economics and Political Science, LSE Library.
    7. Heyen, Daniel, 2015. "Strategic Conflicts on the Horizon: R&D Incentives for Environmental Technologies," Working Papers 0584, University of Heidelberg, Department of Economics.
    8. Armando Zavaleta, 2016. "Climate Change and Breakthrough Technologies: The Role of Markets," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 64(4), pages 597-617, August.
    9. Daniel Heyen, 2016. "Strategic Conflicts On The Horizon: R&D Incentives For Environmental Technologies," Climate Change Economics (CCE), World Scientific Publishing Co. Pte. Ltd., vol. 7(04), pages 1-27, November.
    10. Michael Hübler, 2015. "A theory-based discussion of international technology funding," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 17(2), pages 313-327, April.
    11. Michael Hübler & Michael Finus, 2013. "Is the risk of North–South technology transfer failure an obstacle to a cooperative climate change agreement?," International Environmental Agreements: Politics, Law and Economics, Springer, vol. 13(4), pages 461-479, November.
    12. May Elsayyad & Florian Morath, 2016. "Technology Transfers For Climate Change," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 57(3), pages 1057-1084, August.
    13. Stokes, Leah C., 2013. "The politics of renewable energy policies: The case of feed-in tariffs in Ontario, Canada," Energy Policy, Elsevier, vol. 56(C), pages 490-500.
    14. 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.
    15. Gunter Stephan & Georg Müller-Fürstenberger, 2014. "Global Warming, Technological Change and Trade in Carbon Energy: Challenge or Threat?," Discussion Papers of DIW Berlin 1397, DIW Berlin, German Institute for Economic Research.
    16. Lessmann, Kai & Edenhofer, Ottmar, 2011. "Research cooperation and international standards in a model of coalition stability," Resource and Energy Economics, Elsevier, vol. 33(1), pages 36-54, January.
    17. Adolfo Maza & José Villaverde & María Hierro, 2015. "Non- $$\hbox {CO}_2$$ CO 2 Generating Energy Shares in the World: Cross-Country Differences and Polarization," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 61(3), pages 319-343, July.
    18. Gunter Stephan & Georg Müller-Fürstenberger, 2015. "Global Warming, Technological Change and Trade in Carbon Energy: Challenge or Threat?," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 62(4), pages 791-809, December.

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    More about this item

    Keywords

    climate policy; international climate agreements; R&D policy; technology spillovers;
    All these keywords.

    JEL classification:

    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • Q20 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - General
    • Q38 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Government Policy (includes OPEC Policy)
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

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