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Technology Protocols For Climate Change: An Application Of Fund

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  • Richard S.J. Tol

    () (Economic and Social Research Institute, Dublin)

Abstract

A technology protocol to govern long-term international greenhouse gas emission reduction is proposed. The protocol consists of three parameters: a graduation income, below which countries have no emission reduction obligations; a convergence rate, at which emission intensities should approach that of the most carbon-extensive countries; and an acceleration rate, at the which the most carbon-extensive countries should improve its technology over and above the business as usual scenario. Depending on the parameter values, emission reduction ranges from draconian to almost nil. The graduation income and acceleration rate have the expected effects. The effect of the convergence rate is strongly scenario-dependent; some scenarios, perhaps unrealistically assume strong technological convergence in the no policy case; in other scenarios, adopting best commercial technology in the whole world would lead to substantial emission reduction. Not surprisingly, regions prefer different parameters in the technology protocol. Adopting the opinion of the median voter, atmospheric concentrations of carbon dioxide in the year 2200 would be reduced from 1650 ppm to 950 ppm. This reduction is relatively robust to changes in crucial model parameters. The costs of complying to the technology protocol can be reduced substantially through international trade in emission permits and, particularly, banking and borrowing.

Suggested Citation

  • Richard S.J. Tol, 2002. "Technology Protocols For Climate Change: An Application Of Fund," Working Papers FNU-14, Research unit Sustainability and Global Change, Hamburg University, revised Sep 2002.
  • Handle: RePEc:sgc:wpaper:14
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    File URL: http://www.fnu.zmaw.de/fileadmin/fnu-files/publication/working-papers/bat.pdf
    File Function: First version, 2002
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Vaal, Albert de & Yetkiner, I. Hakan & Zon, Adriaan van, 2002. "The cyclical advancement of drastic technologies," CCSO Working Papers 200217, University of Groningen, CCSO Centre for Economic Research.
    2. P. Michael Link & Richard S.J. Tol, 2006. "The economic impact of a shutdown of the Thermohaline Circulation: an application of FUND," Working Papers FNU-103, Research unit Sustainability and Global Change, Hamburg University, revised May 2006.
    3. P. Michael Link, 2003. "Auswirkungen populationsdynamischer Veränderungen in Fischbeständen auf die Fischereiwirtschaft in der Barentssee," Working Papers FNU-29, Research unit Sustainability and Global Change, Hamburg University, revised May 2003.
    4. P. Michael Link & Richard S. J. Tol, 2004. "Possible economic impacts of a shutdown of the thermohaline circulation: an application of FUND," Portuguese Economic Journal, Springer;Instituto Superior de Economia e Gestao, vol. 3(2), pages 99-114, September.
    5. I. Hakan Yetkiner, 2003. "Is There An Indispensable Role For Government During Recovery From An Earthquake? A Theoretical Elaboration," Working Papers FNU-25, Research unit Sustainability and Global Change, Hamburg University, revised Apr 2003.
    6. Roberto Roson & Richard s.J. Tol, 2003. "An Integrated Assessment Model Of Economy-Energy-Climate – The Model Wiagem: A Comment," Working Papers FNU-26, Research unit Sustainability and Global Change, Hamburg University, revised May 2003.
    7. Richard S.J. Tol, 2002. "Climate, Development And Malaria: An Application Of Fund," Working Papers FNU-16, Research unit Sustainability and Global Change, Hamburg University, revised Sep 2002.
    8. Dritan Osmani, "undated". "A note on optimal transfer schemes, stable coalition for environmental protection and joint maximization assumption," Working Papers FNU-176, Research unit Sustainability and Global Change, Hamburg University.

    More about this item

    Keywords

    climate change; international climate policy; technology; integrated assessment;

    JEL classification:

    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

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