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Unilateral emission reductions when there are cross -country technology spillovers

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Listed:
  • Golombek, Rolf

    () (The Ragnar Frisch Centre for Economic Research)

  • Hoel, Michael

    () (Dept. of Economics, University of Oslo)

Abstract

With limited participation in an international climate agreement, standard economic analysis suggests that a unilateral action taken by a group of countries in order to reduce its emissions is likely to be undermined by increases in emissions from other countries (carbon leakage). While analyses of carbon leakage typically have regarded the technology in each country as given, abatement technologies are endogenous, and thus technology development may be affected by environmental policies. We demonstrate that with endogenous technologies and technology diffusion between countries, it is no longer obvious that reduced emissions in some countries will increase emissions in other countries. We identify cases in which reduced emissions in some countries might reduce emissions also in other countries.

Suggested Citation

  • Golombek, Rolf & Hoel, Michael, 2004. "Unilateral emission reductions when there are cross -country technology spillovers," Memorandum 17/2004, Oslo University, Department of Economics.
  • Handle: RePEc:hhs:osloec:2004_017
    as

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    File URL: http://www.sv.uio.no/econ/english/research/unpublished-works/working-papers/pdf-files/2004/Memo-17-2004.pdf
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    References listed on IDEAS

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    Cited by:

    1. Valentina Bosetti & Melanie Heugues & Alessandro Tavoni, 2017. "Luring others into climate action: coalition formation games with threshold and spillover effects," Oxford Economic Papers, Oxford University Press, vol. 69(2), pages 410-431.

    More about this item

    Keywords

    transboundary pollution; unilateral environmental action; R&D expenditures; technology spillovers.;

    JEL classification:

    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

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