Sharing R&D investments in cleaner technologies to mitigate climate change
Abeer El-Sayed and
Santiago Rubio
Resource and Energy Economics, 2014, vol. 38, issue C, 168-180
Abstract:
This paper examines international cooperation on technological development as an alternative to international cooperation on GHG emission reductions. It is assumed that when countries cooperate they coordinate their investments so as to minimize the agreement costs of controlling emissions. Further it is assumed that in such cases they also pool their R&D efforts so as to fully internalize the spillover effects of their investments in R&D. In order to analyze the scope of cooperation, an agreement formation game is solved in three stages. First, countries decide whether or not to sign the agreement. Then, in the second stage, signatories (playing together) and non-signatories (playing individually) select their investment in R&D. Finally, in the third stage, each country decides on its level of emissions non-cooperatively. For linear environmental damages and quadratic investment costs, our findings show that the maximum participation in a R&D agreement consists of six countries and that participation decreases as spillover effects increase until a minimum participation consisting of three countries is reached.
Keywords: International environmental agreements; R&D investment; Technology spillovers (search for similar items in EconPapers)
JEL-codes: D74 F53 H41 Q54 Q55 (search for similar items in EconPapers)
Date: 2014
References: Add references at CitEc
Citations: View citations in EconPapers (19)
Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S092876551400061X
Full text for ScienceDirect subscribers only
Related works:
Working Paper: Sharing R&D Investments in Cleaner Technologies to Mitigate Climate Change (2014) 
Working Paper: Sharing R&D Investments in Cleaner Technologies to Mitigate Climate Change (2014) 
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:eee:resene:v:38:y:2014:i:c:p:168-180
DOI: 10.1016/j.reseneeco.2014.07.003
Access Statistics for this article
Resource and Energy Economics is currently edited by J. F. Shogren and S. Smulders
More articles in Resource and Energy Economics from Elsevier
Bibliographic data for series maintained by Catherine Liu (repec@elsevier.com).