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International knowledge diffusion and its impact on the cost-effective clean-up of the Baltic Sea

Listed author(s):
  • Elofsson, Katarina

    ()

    (Department of Economics, Swedish University of Agricultural Sciences)

This paper analyzes the implications of international knowledge diffusion for the costs of Baltic-wide policy to reduce nutrient emissions to the Baltic Sea. In particular, the impact on the distribution of abatement and costs over time and space is investigated, and the relative importance of knowledge spillovers between countries and nutrient spillovers between marine basins is examined. Using a spatial and dynamic cost-effectiveness model over the Baltic Sea drainage basin, it is shown that theoretically, the presence of knowledge spillovers could imply that abatement can be cost-effective even if the cost is comparatively high and the impact on water quality is zero. The empirical simulations show that a more likely outcome is that higher knowledge dispersal leads to a further concentration of abatement to countries with large, low-cost abatement opportunities.

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File URL: http://pub.epsilon.slu.se/11500/7/elofsson_k_140909.pdf
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Paper provided by Department Economics, Swedish University of Agricultural Sciences in its series Working Paper Series with number 2014:06.

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Length: 46 pages
Date of creation: 26 Sep 2014
Handle: RePEc:hhs:slueko:2014_006
Contact details of provider: Postal:
Department of Economics, Box 7013, Swedish University of Agricultural Sciences, SE-750 07 Uppsala, Sweden

Phone: 018-67 1724
Fax: 018-67 3502
Web page: http://www.slu.se/ekonomi

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