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International Transfers of Green Technology and Carbon Mitigation Outcomes

Author

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  • CHENG, Haitao
  • YANASE, Akihiko

Abstract

Article 6 of the Paris Agreement seeks to foster international cooperation between developed and developing countries in curbing global carbon emissions. Central to this provision is the facilitation of international transfers of green technology and carbon mitigation outcomes. Through this mechanism, developed countries transfer their green technology to developing countries to help them mitigate emissions. In return, developing countries transfer emission permits equivalent to the mitigated outcomes to developed countries to alleviate their abatement burden. This study employs an international oligopoly model to explore the implications of green technology transfer (GTT) and international transfer of mitigated outcomes (ITMO) on welfare, emission permit issuance and global emissions. We find that once successfully implemented, these transfers consistently improve global welfare. Moreover, when permits are determined non-cooperatively by the countries, the implementation of GTT and ITMO leads to a reduction in global emissions.

Suggested Citation

  • CHENG, Haitao & YANASE, Akihiko, 2025. "International Transfers of Green Technology and Carbon Mitigation Outcomes," Discussion paper series HIAS-E-154, Hitotsubashi Institute for Advanced Study, Hitotsubashi University.
    • Handle: RePEc:hit:hiasdp:hias-e-154
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    JEL classification:

    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • F18 - International Economics - - Trade - - - Trade and Environment
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

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