Climate Change Mitigation with Technology Spillovers

Renaud Foucart and Grégoire Garsous ()

Working Papers ECARES from ULB -- Universite Libre de Bruxelles

Abstract: We explore the implications of an increase in clean technology spillovers between developedand developing countries. We build a 2-stage 2-country game of abatements in whichplayers are linked with technology spillovers. We show that, within a non-cooperative framework,the response of clean technology investments in developed countries to an increase incross-country technology spillovers is ambiguous. If the marginal benefits of these additionalabatements are not sufficiently high, developed countries have a strategic incentive to decreaseinvestments rather than provide developing countries with further incentives to abate. Sucha strategic response jeopardizes the initial effects of an increase in technology spillovers onclimate change mitigation.

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)
Pages: 28 p.
Date: 2014-11
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Journal Article: Climate Change Mitigation with Technology Spillovers (2018)
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Persistent link: https://EconPapers.repec.org/RePEc:eca:wpaper:2013/177138

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