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Can International Climate Cooperation Induce Knowledge Spillover to Developing Countries? Evidence from CDM

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  • Jingbo Cui

    (Duke Kunshan University)

  • Zhenxuan Wang

    (Duke University)

  • Haishan Yu

    (Shanghai Jiao Tong University)

Abstract

Under the Kyoto Protocol, the Clean Development Mechanism (CDM) expects to facilitate the North-South knowledge spillovers for climate-friendly technologies. This paper examines the effect of this voluntary international climate cooperation on firm innovation and knowledge spillovers through the lens of CDM projects in China. Using a matched Difference-in-Differences (DID) approach, we find that CDM projects contribute to firms’ innovation quantity, quality, and direction in renewable energy and energy efficiency technologies. These effects are more pronounced in inducing wind, hydro, and solar energy. We explore the role of foreign sponsors in knowledge spillovers. Sponsoring firms play the technology supplier role by raising the innovation quantity and quality, while sponsoring governments perform the information intermediary role by facilitating citation flows.

Suggested Citation

  • Jingbo Cui & Zhenxuan Wang & Haishan Yu, 2022. "Can International Climate Cooperation Induce Knowledge Spillover to Developing Countries? Evidence from CDM," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 82(4), pages 923-951, August.
    • Handle: RePEc:kap:enreec:v:82:y:2022:i:4:d:10.1007_s10640-022-00697-8
    DOI: 10.1007/s10640-022-00697-8
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    More about this item

    Keywords

    CDM; Knowledge spillovers; Patent; Renewable energy;
    All these keywords.

    JEL classification:

    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights
    • Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation
    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources

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