On the Mechanism of International Technology Diffusion for Energy Technological Progress

Wei Jin () and ZhongXiang Zhang

CCEP Working Papers from Centre for Climate & Energy Policy, Crawford School of Public Policy, The Australian National University

Abstract: International diffusion of energy-saving technologies has received considerable attention in recent energy and climate economics studies. As a helpful methodological complement to the existing large-scale CGE/IAM-based modelling for energy and climate policy studies, this paper contributes to a transparent analytical model for an economically intuitive exposition on the fundamental mechanism of international technology diffusion for energy technological growth. We first develop an efficiency-improving vertical innovation model where energy technological progress is specified as an improvement in primary energy use efficiency. Then a variety-expanding horizontal innovation model is presented where energy technological progress is described as an expansion of energy technology variety. We show that in both models there is a cross-country convergence in the growth rate of energy technology in a long-run balanced growth path, but the absolute levels of energy technology tend to diverge due to cross-country differences in indigenous innovation efficiencies and knowledge absorptive capacities. An economy with a stronger capacity of absorbing foreign knowledge diffusion and undertaking indigenous research tends to have a higher level of energy technology.

Keywords: technological innovation; energy technology diffusion; Solow growth model; endogenous growth model (search for similar items in EconPapers)
JEL-codes: F18 O13 O31 O33 O44 Q43 Q48 Q55 Q58 (search for similar items in EconPapers)
Date: 2014-06, Revised 2014-12
New Economics Papers: this item is included in nep-cse, nep-eff, nep-ene, nep-ino and nep-knm
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https://ccep.crawford.anu.edu.au/sites/default/fil ... 2015-01/ccep1405.pdf

Related works:
Journal Article: On the mechanism of international technology diffusion for energy technological progress (2016)
Working Paper: On the Mechanism of International Technology Diffusion for Energy Technological Progress (2015)
Working Paper: On the Mechanism of International Technology Diffusion for Energy Technological Progress (2015)
Working Paper: On the Mechanism of International Technology Diffusion for Energy Technological Process (2014)
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Persistent link: https://EconPapers.repec.org/RePEc:een:ccepwp:1405

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