The incentives to North-South transfer of climate-mitigation technologies with trade in polluting goods

Matthieu Glachant, Julie Ing () and Jean Philippe Nicolai ()
Additional contact information
Julie Ing: ETH Zurich, Switzerland
Jean Philippe Nicolai: ETH Zurich, Switzerland

No 16/242, CER-ETH Economics working paper series from CER-ETH - Center of Economic Research (CER-ETH) at ETH Zurich

Abstract: The need to transfer climate mitigation technologies towards the developing world has been acknowledged since the beginning of climate negotiations. Little progress has however been made as shown by Article 10 of the Paris Agreement. One reason is that these technologies could become vital assets to compete on global markets. This paper presents a partial equilibrium model with two regions, the North and the South, and imperfect competition in the international polluting goods market to analyze the North’s incentives to accept technology transfer. Results crucially depend on the existence of environmental cooperation. When both northern and southern governments set emission quotas non-cooperatively, inducing fewer global emissions is a necessary, but not sufficient condition for the North to accept the transfer. In contrast, when governments set quotas cooperatively, the North never accepts the transfer because it only leads to a partial relocation of pollutant goods production to the South. We derive the implications for the global regulation of climate change.

Keywords: Technology transfer; Imperfect competition; Climate policy; Environmental cooperation; Cap and trade (search for similar items in EconPapers)
JEL-codes: D43 F18 Q5 (search for similar items in EconPapers)
Pages: 30 pages
Date: 2016-04
New Economics Papers: this item is included in nep-ene, nep-env and nep-res
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Related works:
Journal Article: The Incentives for North-South Transfer of Climate-Mitigation Technologies with Trade in Polluting Goods (2017)
Working Paper: The Incentives for North-South Transfer of Climate-Mitigation Technologies with Trade in Polluting Goods (2017)
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