Technology Transfers and the Clean Development Mechanism in a North-South General Equilibrium Model
This paper analyzes the potential welfare gains of introducing a technology transfer from Annex I to non-Annex I in order to mitigate greenhouse gas emissions. Our analysis is based on a numerical general equilibrium model for a world economy comprising two regions, North (Annex I) and South (non-Annex I). As our model allows for labor mobility between the formal and informal sectors in the South, we are also able to capture additional aspects of how the transfer influences the Southern economy. In a cooperative equilibrium, a technology transfer from the North to the South is clearly desirable from the perspective of a ‘global social planner’, since the welfare gain for the South outweighs the welfare loss for the North. However, if the regions do not cooperate, then the incentives to introduce the technology transfer appear to be relatively weak from the perspective of the North; at least if we allow for Southern abatement in the pre-transfer Nash equilibrium. Finally, by adding the emission reductions associated with the Kyoto agreement to an otherwise uncontrolled market economy, the technology transfer leads to higher welfare in both regions.
|Date of creation:||Nov 2006|
|Contact details of provider:|| Postal: Corso Magenta, 63 - 20123 Milan|
Web page: http://www.feem.it/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Aronsson, Thomas & Blomquist, Soren, 2003.
"Optimal taxation, global externalities and labor mobility,"
Journal of Public Economics,
Elsevier, vol. 87(12), pages 2749-2764, December.
- Aronsson, Thomas & Blomquist, Sören, 2000. "Optimal Taxation, Global Externalities and Labor Mobility," Umeå Economic Studies 544, Umeå University, Department of Economics.
- Aronsson, T. & Blomquist, S., 2000. "Optimal Taxation, Global Externalities and Labor Mobility," Papers 2000-15, Uppsala - Working Paper Series.
- Thomas Aronsson & SÃ¶ren Blomquist, 2001. "Optimal Taxation, Global Externalities and Labor Mobility," CESifo Working Paper Series 458, CESifo Group Munich.
- Aronsson, T. & Blomquist, S., 2000. "Optimal Taxation, Global Externalities and Labor Mobility," Papers 2000:15, Uppsala - Working Paper Series.
- Aronsson, Thomas & Blomquist, Sören, 2000. "Optimal Taxation, Global Externalities and Labor Mobility," Working Paper Series 2000:15, Uppsala University, Department of Economics.
- Philibert, Cedric, 2000. "How could emissions trading benefit developing countries," Energy Policy, Elsevier, vol. 28(13), pages 947-956, November.
- Millock, Katrin, 2002. "Technology transfers in the Clean Development Mechanism: an incentives issue," Environment and Development Economics, Cambridge University Press, vol. 7(03), pages 449-466, July.
- K. Millock, 2002. "Technology transfers in the Clean Development Mechanism: an incentives issue," Post-Print hal-00716425, HAL.
- Carraro, Carlo & Siniscalco, Domenico, 1993. "Strategies for the international protection of the environment," Journal of Public Economics, Elsevier, vol. 52(3), pages 309-328, October.
- Carraro, Carlo & Siniscalco, Domenico, 1991. "Strategies for the International Protection of the Environment," CEPR Discussion Papers 568, C.E.P.R. Discussion Papers.
- Frank Jotzo & Axel Michaelowa, 2002. "Estimating the CDM market under the Marrakech Accords," Climate Policy, Taylor & Francis Journals, vol. 2(2-3), pages 179-196, September. Full references (including those not matched with items on IDEAS)
When requesting a correction, please mention this item's handle: RePEc:fem:femwpa:2006.145. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (barbara racah)
If references are entirely missing, you can add them using this form.