Climate Policy with Technology Transfers and Permit Trading
AbstractIn this paper, we analyze technology transfers (TT) and tradable emission rights, which are core issues of the ongoing climate negotiations. Subsidizing TT leads to the adoption of better abatement technologies in developing countries, thereby reducing the international permit price. This is bene cial for industrialized countries as long as they are permit buyers, and as long as they can target subsidies to additional" investments. We also consider how TT a ects countries' non-cooperative choices of permit endowments and nd that it reduces overall emissions. Finally, a simple numerical simulation model illustrates some results and explores some further comparative statics.
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Bibliographic InfoPaper provided by University of Oldenburg, Department of Economics in its series Working Papers with number V-341-11.
Length: 24 pages
Date of creation: Nov 2011
Date of revision: Nov 2011
Publication status: Published in Oldenburg Working Papers V-341-11
emissions trading; technology transfer; international climate policy.;
Find related papers by JEL classification:
- D62 - Microeconomics - - Welfare Economics - - - Externalities
- D78 - Microeconomics - - Analysis of Collective Decision-Making - - - Positive Analysis of Policy-Making and Implementation
- H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
- O38 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Government Policy
- Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy
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