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Climate Change Mitigation with Technology Spillovers

Author

Listed:
  • Renaud Foucart

    (Humboldt University)

  • Grégoire Garsous

    (Université libre de Bruxelles, ECARES)

Abstract

We explore the implications of an increase in clean technology spillovers between developed and developing countries. We build a game of abatements in which players are linked with technology spillovers determined by an initial choice of absorptive capacities by developing countries. We show that, within a non-cooperative framework, the response of clean technology investments in developed countries to an increase in cross-country technology spillovers is ambiguous. If the marginal benefits of these additional abatements are not sufficiently high, developed countries have a strategic incentive to decrease investments. Such a strategic response jeopardizes the initial effects of an increase in technology spillovers on climate change mitigation and decreases the incentives for developing countries to enhance their absorptive capacities.

Suggested Citation

  • Renaud Foucart & Grégoire Garsous, 2018. "Climate Change Mitigation with Technology Spillovers," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 71(2), pages 507-527, October.
    • Handle: RePEc:kap:enreec:v:71:y:2018:i:2:d:10.1007_s10640-017-0170-3
    DOI: 10.1007/s10640-017-0170-3
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    1. Buchholz, Wolfgang & Dippl, Lisa & Eichenseer, Michael, 2019. "Subsidizing renewables as part of taking leadership in international climate policy: The German case," Energy Policy, Elsevier, vol. 129(C), pages 765-773.

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    More about this item

    Keywords

    Climate change; Cross-country spillovers; Abatements; Technology investments;
    All these keywords.

    JEL classification:

    • H40 - Public Economics - - Publicly Provided Goods - - - General
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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