Climate change mitigation with technology spillovers

Foucart, Renaud; Garsous, Gr�goire

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.

Citation

Foucart, R., & Garsous, G. (2018). Climate change mitigation with technology spillovers. Environmental and Resource Economics, 71(2), 507–527. https://doi.org/10.1007/s10640-017-0170-3

• Journal Article Type: Article
• Acceptance Date: Jul 4, 2017
• Online Publication Date: Jul 10, 2017
• Publication Date: 2018-10
• Deposit Date: Feb 6, 2018
• Publicly Available Date: Feb 6, 2018
• Journal: Environmental and Resource Economics
• Print ISSN: 0924-6460
• Electronic ISSN: 1573-1502
• Publisher: Springer Verlag
• Peer Reviewed: Peer Reviewed
• Volume: 71
• Issue: 2
• Pages: 507–527
• DOI: https://doi.org/10.1007/s10640-017-0170-3
• Keywords: Climate change; Cross-country spillovers; Abatements; Technology investments
• Public URL: https://nottingham-repository.worktribe.com/output/872186
• Publisher URL: https://link.springer.com/article/10.1007/s10640-017-0170-3
• 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
• Contract Date: Feb 6, 2018