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

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

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    Article provided by Elsevier in its journal Resource and Energy Economics.

    Volume (Year): 32 (2010)
    Issue (Month): 3 (August)
    Pages: 292-309

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    Handle: RePEc:eee:resene:v:32:y:2010:i:3:p:292-309
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    5. Dechezleprêtre, Antoine & Glachant, Matthieu & Ménière, Yann, 2008. "The Clean Development Mechanism and the international diffusion of technologies: An empirical study," Energy Policy, Elsevier, vol. 36(4), pages 1273-1283, April.
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    9. Anger, Niels & Böhringer, Christoph & Moslener, Ulf, 2007. "Macroeconomic Impacts of the Clean Development Mechanism: The Role of Investment Barriers and Regulations," ZEW Discussion Papers 07-026, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
    10. Marcus Wagner, 2004. "The Porter Hypothesis Revisited: A Literature Review of Theoretical Models and Empirical Tests," Public Economics 0407014, EconWPA.
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