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Climate Policy with Technology Transfers and Permit Trading

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  • Carsten Helm

    ()
    (University of Oldenburg, Department of Economics)

  • Stefan Pichler

    ()
    (Technische Universität Darmstadt)

Abstract

In 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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File URL: http://www.vwl.uni-oldenburg.de/download/DP_V-341_11.pdf
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Bibliographic Info

Paper provided by University of Oldenburg, Department of Economics in its series Working Papers with number V-341-11.

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Length: 24 pages
Date of creation: Nov 2011
Date of revision: Nov 2011
Publication status: Published in Oldenburg Working Papers V-341-11
Handle: RePEc:old:dpaper:341

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Keywords: emissions trading; technology transfer; international climate policy.;

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  20. Mads Greaker & Cathrine Hagem, 2010. "Strategic investment in climate friendly technologies: the impact of permit trade," Discussion Papers 615, Research Department of Statistics Norway.
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