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Unilateral emission reductions when there are cross -country technology spillovers

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Author Info
Golombek, Rolf () (The Ragnar Frisch Centre for Economic Research)
Hoel, Michael () (Dept. of Economics, University of Oslo)

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Abstract

With limited participation in an international climate agreement, standard economic analysis suggests that a unilateral action taken by a group of countries in order to reduce its emissions is likely to be undermined by increases in emissions from other countries (carbon leakage). While analyses of carbon leakage typically have regarded the technology in each country as given, abatement technologies are endogenous, and thus technology development may be affected by environmental policies. We demonstrate that with endogenous technologies and technology diffusion between countries, it is no longer obvious that reduced emissions in some countries will increase emissions in other countries. We identify cases in which reduced emissions in some countries might reduce emissions also in other countries.

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File URL: http://www.oekonomi.uio.no/memo/memopdf/memo1704.pdf
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Publisher Info
Paper provided by Oslo University, Department of Economics in its series Memorandum with number 17/2004.

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Length: 23 pages
Date of creation: 27 Oct 2004
Date of revision:
Handle: RePEc:hhs:osloec:2004_017

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Postal: Department of Economics, University of Oslo, P.O Box 1095 Blindern, N-0317 Oslo, Norway
Phone: 22 85 51 27
Fax: 22 85 50 35
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Web page: http://www.oekonomi.uio.no/indexe.html
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Related research
Keywords: transboundary pollution; unilateral environmental action; R&D expenditures; technology spillovers.;

Find related papers by JEL classification:
O30 - Economic Development, Technological Change, and Growth - - Technological Change - - - General
Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters

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