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Unilateral Emissions Mitigation, Spillovers, and Global Learning

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  • Chatterji, Shurojit
  • Ghosal, Sayantan
  • Walsh, Sean
  • Whalley, John

Abstract

What's the role of unilateral measures in global climate change mitigation in a post-Durban, post 2012 global policy regime? We argue that under conditions of preference heterogeneity, unilateral emissions mitigation at a subnational level may exist even when a nation is unwilling to commit to emission cuts. As the fraction of individuals unilaterally cutting emissions in a global strongly connected network of countries evolves over time, learning the costs of cutting emissions can result in the adoption of such activities globally and we establish that this will indeed happen under certain assumptions. We analyze the features of a policy proposal that could accelerate convergence to a low carbon world in the presence of global learning.

Suggested Citation

  • Chatterji, Shurojit & Ghosal, Sayantan & Walsh, Sean & Whalley, John, 2013. "Unilateral Emissions Mitigation, Spillovers, and Global Learning," SIRE Discussion Papers 2013-87, Scottish Institute for Research in Economics (SIRE).
  • Handle: RePEc:edn:sirdps:504
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    File URL: http://hdl.handle.net/10943/504
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    References listed on IDEAS

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    1. de Coninck, Heleen & Stephens, Jennie C. & Metz, Bert, 2009. "Global learning on carbon capture and storage: A call for strong international cooperation on CCS demonstration," Energy Policy, Elsevier, vol. 37(6), pages 2161-2165, June.
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    3. Shapley, Lloyd S & Shubik, Martin, 1969. "On the Core of an Economic System with Externalities," American Economic Review, American Economic Association, vol. 59(4), pages 678-684, Part I Se.
    4. Dutta, Bhaskar & Ghosal, Sayantan & Ray, Debraj, 2005. "Farsighted network formation," Journal of Economic Theory, Elsevier, vol. 122(2), pages 143-164, June.
    5. Shurojit Chatterji & Sayantan Ghosal & Sean Walsh & John Whalley, 2014. "Unilateral Measures and Emissions Mitigation," World Scientific Book Chapters,in: THE GLOBAL DEVELOPMENT OF POLICY REGIMES TO COMBAT CLIMATE CHANGE, chapter 8, pages 181-223 World Scientific Publishing Co. Pte. Ltd..
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    8. Shurojit Chatterji & Sayantan Ghosal, 2009. "Technology, Unilateral Commitments and Cumulative Emissions Reduction," CESifo Economic Studies, CESifo, vol. 55(2), pages 286-305, June.
    9. Barreto, Leonardo & Kypreos, Socrates, 2004. "Emissions trading and technology deployment in an energy-systems "bottom-up" model with technology learning," European Journal of Operational Research, Elsevier, vol. 158(1), pages 243-261, October.
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    More about this item

    Keywords

    Unilateral initiatives; mitigation; spillovers; global learning; technology transfer;

    JEL classification:

    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • F53 - International Economics - - International Relations, National Security, and International Political Economy - - - International Agreements and Observance; International Organizations
    • Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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