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Climate Change Mitigation with Technology Spillovers

Renaud Foucart and Grégoire Garsous ()

Environmental & Resource Economics, 2018, vol. 71, issue 2, 507-527

Abstract: 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.

Keywords: Climate change; Cross-country spillovers; Abatements; Technology investments (search for similar items in EconPapers)
JEL-codes: H40 Q54 Q55 Q56 (search for similar items in EconPapers)
Date: 2018
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Working Paper: Climate Change Mitigation with Technology Spillovers (2014) Downloads
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