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On the Mechanism of International Technology Diffusion for Energy Technological Process

Wei Jin () and ZhongXiang Zhang

No 249425, Working Papers from Australian National University, Centre for Climate Economics & Policy

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: Research and Development/Tech Change/Emerging Technologies; Resource/Energy Economics and Policy (search for similar items in EconPapers)
Pages: 35
Date: 2014-12
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https://ageconsearch.umn.edu/record/249425/files/ccep1405.pdf (application/pdf)

Related works:
Journal Article: On the mechanism of international technology diffusion for energy technological progress (2016) Downloads
Working Paper: On the Mechanism of International Technology Diffusion for Energy Technological Progress (2015) Downloads
Working Paper: On the Mechanism of International Technology Diffusion for Energy Technological Progress (2015) Downloads
Working Paper: On the Mechanism of International Technology Diffusion for Energy Technological Progress (2014) Downloads
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Persistent link: https://EconPapers.repec.org/RePEc:ags:ancewp:249425

DOI: 10.22004/ag.econ.249425

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