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Climate Policy with Technology Transfers and Permit Trading

Author

Listed:
  • Carsten Helm

    () (University of Oldenburg, Department of Economics)

  • Stefan Pichler

    () (Technische Universität Darmstadt)

Abstract

In this paper, we analyze technology transfers (TT) and tradable emission rights, which are core issues of the ongoing climate negotiations. Subsidizing TT leads to the adoption of better abatement technologies in developing countries, thereby reducing the international permit price. This is bene cial for industrialized countries as long as they are permit buyers, and as long as they can target subsidies to additional" investments. We also consider how TT a ects countries' non-cooperative choices of permit endowments and nd that it reduces overall emissions. Finally, a simple numerical simulation model illustrates some results and explores some further comparative statics.

Suggested Citation

  • Carsten Helm & Stefan Pichler, 2011. "Climate Policy with Technology Transfers and Permit Trading," Working Papers V-341-11, University of Oldenburg, Department of Economics, revised Nov 2011.
  • Handle: RePEc:old:dpaper:341
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    File URL: http://www.vwl.uni-oldenburg.de/download/DP_V-341_11.pdf
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    References listed on IDEAS

    as
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    Citations

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    Cited by:

    1. Wolfgang Habla & Ralph Winkler, 2017. "Strategic Delegation and International Permit Markets: Why Linking May Fail," CESifo Working Paper Series 6515, CESifo Group Munich.
    2. Matthieu Glachant & Julie Ing & Jean Philippe Nicolai, 2017. "The Incentives for North-South Transfer of Climate-Mitigation Technologies with Trade in Polluting Goods," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 66(3), pages 435-456, March.
    3. Habla, Wolfgang & Winkler, Ralph, 2015. "Strategic Delegation and Non-cooperative International Permit Markets," Working Papers in Economics 636, University of Gothenburg, Department of Economics.
    4. Gunter Stephan & Georg Müller-Fürstenberger, 2014. "Global Warming, Technological Change and Trade in Carbon Energy: Challenge or Threat?," Discussion Papers of DIW Berlin 1397, DIW Berlin, German Institute for Economic Research.
    5. Gunter Stephan & Georg Müller-Fürstenberger, 2015. "Global Warming, Technological Change and Trade in Carbon Energy: Challenge or Threat?," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 62(4), pages 791-809, December.

    More about this item

    Keywords

    emissions trading; technology transfer; international climate policy.;

    JEL classification:

    • D62 - Microeconomics - - Welfare Economics - - - Externalities
    • D78 - Microeconomics - - Analysis of Collective Decision-Making - - - Positive Analysis of Policy Formulation and Implementation
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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