Climate change mitigation with technology spillovers

Foucart, Renaud and Garsous, Grégoire (2017) Climate change mitigation with technology spillovers. Environmental and Resource Economics . ISSN 1573-1502

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Abstract

We explore the implications of an increase in clean technology spillovers between developed and developing countries. We build a game of abatements in which players are linked with technology spillovers determined by an initial choice of absorptive capacities by developing countries. We show that, within a non-cooperative framework, the response of clean technology investments in developed countries to an increase in cross-country technology spillovers is ambiguous. If the marginal benefits of these additional abatements are not sufficiently high, developed countries have a strategic incentive to decrease investments. Such a strategic response jeopardizes the initial effects of an increase in technology spillovers on climate change mitigation and decreases the incentives for developing countries to enhance their absorptive capacities.

Item Type: Article
Additional Information: This is a post-peer-review, pre-copyedit version of an article published in Environmental and Resource Economics. The final authenticated version is available online at: http://dx.doi.org/10.1007/s10640-017-0170-3
Keywords: Climate change; Cross-country spillovers; Abatements; Technology investments
Schools/Departments: University of Nottingham, UK > Faculty of Social Sciences > Nottingham University Business School
Identification Number: 10.1007/s10640-017-0170-3
Depositing User: Eprints, Support
Date Deposited: 06 Feb 2018 11:06
Last Modified: 06 Feb 2018 11:09
URI: http://eprints.nottingham.ac.uk/id/eprint/49581

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