Climate change scenarios and Technology Transfer Protocols
We apply a specific version of MERGE-ETL, an integrated assessment model, to study global climate policies supported by Technology Transfer Protocols (TTPs). We model a specific formulation of such a TTP where donor countries finance via carbon tax revenues, the diffusion of carbon-free technologies in developing countries (DCs) and quantify its benefits. Industrialized countries profit from increased technology exports, global diffusion of advanced technology (leading to additional technology learning and cost reductions) and reduced climate damages through the likelihood of greater global participation in a new international agreement. DCs experience increased welfare from access to subsidized technology, and profit from the reduction of damages related to climate change and expected secondary benefits of carbon abatement (such as reduced local and regional air pollution). The analysis identifies potential candidate technologies that could be supported under a TTP, and the impact of a TTP on economic development (including the flow of transfer subsidies) and global emissions. Although a TTP may encourage additional participation, such a proposal is only likely to be successful if an increased willingness to pay to avoid climate damages is accepted, first by the present and future generations of the industrialized world and later on, when sufficient economic growth is accumulated, by today's developing countries.
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- Kypreos, Socrates, 2007. "A MERGE model with endogenous technological change and the cost of carbon stabilization," Energy Policy, Elsevier, vol. 35(11), pages 5327-5336, November.
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- Yang, Zili & Nordhaus, William D., 2006. "Magnitude and direction of technological transfers for mitigating GHG emissions," Energy Economics, Elsevier, vol. 28(5-6), pages 730-741, November.
- Tooraj Jamasb, 2007. "Technical Change Theory and Learning Curves: Patterns of Progress in Electricity Generation Technologies," The Energy Journal, International Association for Energy Economics, vol. 0(Number 3), pages 51-72.
- Manne, Alan & Richels, Richard, 2004. "The impact of learning-by-doing on the timing and costs of CO2 abatement," Energy Economics, Elsevier, vol. 26(4), pages 603-619, July.
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