Induced Innovation and International Environmental Agreements: Evidence from the Ozone Regime

Eugenie Dugoua

No 10669, CESifo Working Paper Series from CESifo

Abstract: This paper revisits one of the rare success stories in global environmental cooperation: the Montreal Protocol and the phase-out of ozone-depleting substances. I show that the protocol increased science and innovation on alternatives to ozone-depleting substances, and argue that agreements can indeed be useful to solving global public goods problems. This contrasts with game-theoretical predictions that agreements occur only when costs to the players are low, and with the often-heard narrative that substitutes were readily available. I reconcile theory and empirics by discussing the role of induced innovation in models of environmental agreements.

Keywords: induced innovation; directed technological change; green innovation (search for similar items in EconPapers)
JEL-codes: O30 Q55 (search for similar items in EconPapers)
Date: 2023
New Economics Papers: this item is included in nep-env, nep-ino and nep-pke
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Persistent link: https://EconPapers.repec.org/RePEc:ces:ceswps:_10669

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