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Economic and Environmental Effectiveness of a Technology-based Protocol

Author

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  • Buchner, Barbara
  • Carraro, Carlo

Abstract

This Paper provides a first applied game theory analysis of a technology-based climate protocol by assessing: (i) the self-enforcement (namely, the absence of incentives to free ride) of the coalition that would form when countries negotiate on climate-related technological cooperation; (ii) the environmental effectiveness of a technology-based climate protocol. The analysis is carried out using a model in which endogenous and induced technical changes are explicitly modelled and in which international technological spillovers are also quantified. The results of our analysis partly support Barrett’s and Benedick’s conjecture. On the one hand, a self-enforcing agreement is more likely to emerge when countries cooperate on environmental technological innovation and diffusion than when they cooperate on emission abatement. Technological cooperation – without any commitment to emission control – may not lead to a sufficient abatement of greenhouse gas concentrations, however.

Suggested Citation

  • Buchner, Barbara & Carraro, Carlo, 2004. "Economic and Environmental Effectiveness of a Technology-based Protocol," CEPR Discussion Papers 4412, C.E.P.R. Discussion Papers.
  • Handle: RePEc:cpr:ceprdp:4412
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    Cited by:

    1. repec:ebl:ecbull:v:17:y:2004:i:7:p:1-11 is not listed on IDEAS
    2. Buchner, Barbara & Carraro, Carlo, 2005. "Regional and Sub-Global Climate Blocs. A Game-Theoretic Perspective on Bottom-up Climate Regimes," CEPR Discussion Papers 5034, C.E.P.R. Discussion Papers.
    3. El-Sayed, Abeer & Rubio, Santiago J., 2014. "Sharing R&D investments in cleaner technologies to mitigate climate change," Resource and Energy Economics, Elsevier, vol. 38(C), pages 168-180.
    4. Alberto Ansuategi & Marta Escapa, 2004. "Is international cooperation on climate change good for the environment?," Economics Bulletin, AccessEcon, vol. 17(7), pages 1-11.

    More about this item

    Keywords

    agreements; climate; incentives; policy; technological change;

    JEL classification:

    • C70 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - General
    • H00 - Public Economics - - General - - - General
    • H40 - Public Economics - - Publicly Provided Goods - - - General
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General

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