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Global Warming, Technology Transfer and Trade in Carbon Energy: Challenge or Threat?

  • Georg Müller-Fürstenberger
  • Gunter Stephan
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    Is it possible to combat global climate change through North-to-South technology transfer even without a global climate treaty? Or do carbon leakage and the rebound effect imply that it is possible to take advantage of technological improvements under the umbrella of a global arrangement only? For answering these questions a world with full international cooperation is compared with a world, where countries act non-cooperatively. More precisely, in case of non-cooperation two cases are discussed. The first one is called Kyoto-plus and the second one labeled Kyoto-reversed. Kyoto-plus means that the North decides: (1) to unilaterally reduce its domestic greenhouse gas emissions and (2), to transfer technological knowledge to the South. If Kyoto-reversed is considered, the North decides on transferring technology while the South commits itself to reduce emissions. Rebound and leakage effects hinder a sustainable and welfare improving solution of the climate problem.

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    File URL: http://www.uni-trier.de/fileadmin/fb4/prof/VWL/EWF/Research_Papers/2012-05.pdf
    File Function: First version, 2012
    Download Restriction: no

    Paper provided by University of Trier, Department of Economics in its series Research Papers in Economics with number 2012-05.

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    Length: 22 pages
    Date of creation: 2012
    Date of revision:
    Handle: RePEc:trr:wpaper:201205
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    Web page: http://www.uni-trier.de/index.php?id=2118

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    1. Antoine Dechezleprêtre & Matthieu Glachant & Ivan Hascic & Nick Johnstone & Yann Ménière, 2011. "Invention and transfer of climate change-mitigation technologies: A global analysis," Post-Print hal-00488214, HAL.
    2. Brannlund, Runar & Ghalwash, Tarek & Nordstrom, Jonas, 2007. "Increased energy efficiency and the rebound effect: Effects on consumption and emissions," Energy Economics, Elsevier, vol. 29(1), pages 1-17, January.
    3. Wolfgang Buchholz & Kai Konrad, 1994. "Global environmental problems and the strategic choice of technology," Journal of Economics, Springer, vol. 60(3), pages 299-321, October.
    4. Gillingham, Kenneth & Newell, Richard G. & Pizer, William A., 2008. "Modeling endogenous technological change for climate policy analysis," Energy Economics, Elsevier, vol. 30(6), pages 2734-2753, November.
    5. Yang, Zili & Nordhaus, William D., 2006. "Magnitude and direction of technological transfers for mitigating GHG emissions," Energy Economics, Elsevier, vol. 28(5-6), pages 730-741, November.
    6. Aronsson, Thomas & Backlund, Kenneth & Sahlén, Linda, 2010. "Technology transfers and the clean development mechanism in a North-South general equilibrium model," Resource and Energy Economics, Elsevier, vol. 32(3), pages 292-309, August.
    7. Bhagwati, Jagdish N & Brecher, Richard A & Hatta, Tatsuo, 1983. "The Generalized Theory of Transfers and Welfare: Bilateral Transfers in a Multilateral World," American Economic Review, American Economic Association, vol. 73(4), pages 606-18, September.
    8. John Stranlund, 1996. "On the strategic potential of technological aid in international environmental relations," Journal of Economics, Springer, vol. 64(1), pages 1-22, February.
    9. Graciela Chichilnisky & Geoffrey Heal, 1993. "Who Should Abate Carbon Emissions? An International Viewpoint," NBER Working Papers 4425, National Bureau of Economic Research, Inc.
    10. Scott Barrett, 2006. "Climate Treaties and "Breakthrough" Technologies," American Economic Review, American Economic Association, vol. 96(2), pages 22-25, May.
    11. Yang, Zili, 1999. "Should the north make unilateral technology transfers to the south?: North-South cooperation and conflicts in responses to global climate change," Resource and Energy Economics, Elsevier, vol. 21(1), pages 67-87, January.
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