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Technology transfers and the clean development mechanism in a North-South general equilibrium model

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  • Aronsson, Thomas
  • Backlund, Kenneth
  • Sahlén, Linda

Abstract

This paper analyses the potential welfare gains of introducing a technology transfer from Annex I to non-Annex I in order to mitigate greenhouse gas emissions. Our analysis is based on a numerical general equilibrium model for a world-economy comprising two regions; North (Annex I) and South (non-Annex I). In a cooperative equilibrium, a technology transfer from the North to the South is clearly desirable from the perspective of a [`]global social planner', since the welfare gain for the South outweighs the welfare loss for the North. However, if the regions do not cooperate, then the incentives to introduce the technology transfer appear to be relatively weak from the perspective of the North; at least if we allow for Southern abatement in the pre-transfer Nash equilibrium. Finally, by adding the emission reductions associated with the Kyoto agreement, our results show that the technology transfer leads to higher welfare in both regions.

Suggested Citation

  • Aronsson, Thomas & Backlund, Kenneth & Sahlén, Linda, 2010. "Technology transfers and the clean development mechanism in a North-South general equilibrium model," Resource and Energy Economics, Elsevier, vol. 32(3), pages 292-309, August.
  • Handle: RePEc:eee:resene:v:32:y:2010:i:3:p:292-309
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Georg Müller-Fürstenberger & Gunter Stephan, 2012. "Global Warming, Technology Transfer and Trade in Carbon Energy: Challenge or Threat?," Research Papers in Economics 2012-05, University of Trier, Department of Economics.
    2. Laing, Timothy & Palmer, Charles, 2015. "Economy-wide impacts of REDD when there is political influence," Resource and Energy Economics, Elsevier, vol. 40(C), pages 107-126.
    3. Gunter Stephan & Georg Müller-Fürstenberger, 2012. "Global Warming, Technology Transfer and Trade in Carbon Energy: Challenge or Threat?," Diskussionsschriften dp1206, Universitaet Bern, Departement Volkswirtschaft.
    4. Mare Sarr & Joëlle Noailly, 2017. "Innovation, Diffusion, Growth and the Environment: Taking Stock and Charting New Directions," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 66(3), pages 393-407, March.
    5. Mare Sarr & Tim Swanson, 2017. "Will Technological Change Save the World? The Rebound Effect in International Transfers of Technology," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 66(3), pages 577-604, March.

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