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Climate Change Mitigation with Technology Spillovers

Author

Listed:
  • Renaud Foucart
  • Grégoire Garsous

Abstract

We explore the implications of an increase in clean technology spillovers between developedand developing countries. We build a 2-stage 2-country game of abatements in whichplayers are linked with technology spillovers. We show that, within a non-cooperative framework,the response of clean technology investments in developed countries to an increase incross-country technology spillovers is ambiguous. If the marginal benefits of these additionalabatements are not sufficiently high, developed countries have a strategic incentive to decreaseinvestments rather than provide developing countries with further incentives to abate. Sucha strategic response jeopardizes the initial effects of an increase in technology spillovers onclimate change mitigation.

Suggested Citation

  • Renaud Foucart & Grégoire Garsous, 2014. "Climate Change Mitigation with Technology Spillovers," Working Papers ECARES ECARES 2014-50, ULB -- Universite Libre de Bruxelles.
  • Handle: RePEc:eca:wpaper:2013/177138
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    References listed on IDEAS

    as
    1. 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.
    2. Lovely, Mary & Popp, David, 2011. "Trade, technology, and the environment: Does access to technology promote environmental regulation?," Journal of Environmental Economics and Management, Elsevier, vol. 61(1), pages 16-35, January.
    3. Hoel, Michael, 1991. "Global environmental problems: The effects of unilateral actions taken by one country," Journal of Environmental Economics and Management, Elsevier, vol. 20(1), pages 55-70, January.
    4. Yann Ménière & Antoine Dechezleprêtre & Matthieu Glachant & Ivan Hascic & N. Johnstone, 2011. "Invention and transfer of climate change mitigation technologies: a study drawing on patent data," Post-Print hal-00869795, HAL.
    5. Antoine Dechezleprêtre & Matthieu Glachant & Ivan Haščič & Nick Johnstone & Yann Ménière, 2011. "Invention and Transfer of Climate Change--Mitigation Technologies: A Global Analysis," Review of Environmental Economics and Policy, Association of Environmental and Resource Economists, vol. 5(1), pages 109-130, Winter.
    6. Antoine Dechezleprêtre & Matthieu Glachant & Ivan Haščič & Nick Johnstone & Yann Ménière, 2011. "Invention and Transfer of Climate Change--Mitigation Technologies: A Global Analysis," Review of Environmental Economics and Policy, Association of Environmental and Resource Economists, vol. 5(1), pages 109-130, Winter.
    7. Gallagher, Kelly Sims, 2006. "Limits to leapfrogging in energy technologies? Evidence from the Chinese automobile industry," Energy Policy, Elsevier, vol. 34(4), pages 383-394, March.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    climate change; cross country spillovers; abatements; technology investments;

    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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