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Induced innovation and international environmental agreements: Evidence from the ozone regime

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  • Eugenie Dugoua

Abstract

This paper revisits one of the rare success stories in global environmental cooperation: the Montreal Protocol and the phase-out of ozone-depleting substances. I show that the protocol increased science and innovation on alternatives to ozone-depleting substances and argue that agreements can indeed be useful to solving global public goods problems. This contrasts with game-theoretical predictions that agreements occur only when costs to the players are low, and with the often-heard narrative that substitutes were readily available. I reconcile theory and empirics by discussing the role of induced innovation in models of environmental agreements.

Suggested Citation

  • Eugenie Dugoua, 2023. "Induced innovation and international environmental agreements: Evidence from the ozone regime," CEP Discussion Papers dp1947, Centre for Economic Performance, LSE.
    • Handle: RePEc:cep:cepdps:dp1947
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    Keywords

    induced innovation; directed technological change; green innovation;
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