On the Mechanism of International Technology Diffusion for Energy Technological Progress

Wei Jin and ZhongXiang Zhang

No 200261, Climate Change and Sustainable Development from Fondazione Eni Enrico Mattei (FEEM)

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: Resource/Energy; Economics; and; Policy (search for similar items in EconPapers)
Pages: 38
Date: 2015-03-24
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Citations: View citations in EconPapers (1)

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https://ageconsearch.umn.edu/record/200261/files/NDL2015-024.pdf (application/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 Process (2014)
Working Paper: On the Mechanism of International Technology Diffusion for Energy Technological Progress (2014)
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Persistent link: https://EconPapers.repec.org/RePEc:ags:feemcl:200261

DOI: 10.22004/ag.econ.200261

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