When Should Developing Countries Announce Their Climate Policy?

Jorge Fernandez and Sebastian Miller

No 4755, Research Department Publications from Inter-American Development Bank, Research Department

Abstract: This paper provides a rationale for developing countries to announce future credible commitments to reduce GHG emissions even if these are not to materialize in the short run, and for domestic reasons only. A simple framework is presented in which it is shown that it may be costly for an economy to transition from high to low emissions; and that, if climate policy eventually will be enacted, then it may be better for countries to commit earlier and therefore eliminate the uncertainty for the private sector to invest appropriately in clean technologies. In particular, conditions are shown under which the private investor prefers a pre-announced climate policy, and how this policy affects investment decisions and the deployment of clean technologies.

JEL-codes: D81 H23 Q54 (search for similar items in EconPapers)
Date: 2011-12
New Economics Papers: this item is included in nep-ene and nep-env
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.iadb.org/research/pub_hits.cfm?pub_id=36607021 (application/pdf)
Our link check indicates that this URL is bad, the error code is: 404 Not Found (http://www.iadb.org/research/pub_hits.cfm?pub_id=36607021 [301 Moved Permanently]--> https://www.iadb.org/research/pub_hits.cfm?pub_id=36607021)

Related works:
Working Paper: When Should Developing Countries Announce Their Climate Policy? (2011)
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:idb:wpaper:4755

Access Statistics for this paper

More papers in Research Department Publications from Inter-American Development Bank, Research Department Contact information at EDIRC.
Bibliographic data for series maintained by Felipe Herrera Library ().