International Transfers of Green Technology and Carbon Mitigation Outcomes

Haitao Cheng and Akihiko Yanase

No HIAS-E-154, Discussion paper series from Hitotsubashi Institute for Advanced Study, Hitotsubashi University

Abstract: Article 6 of the Paris Agreement seeks to foster international cooperation between developed and developing countries in curbing global carbon emissions. Central to this provision is the facilitation of international transfers of green technology and carbon mitigation outcomes. Through this mechanism, developed countries transfer their green technology to developing countries to help them mitigate emissions. In return, developing countries transfer emission permits equivalent to the mitigated outcomes to developed countries to alleviate their abatement burden. This study employs an international oligopoly model to explore the implications of green technology transfer (GTT) and international transfer of mitigated outcomes (ITMO) on welfare, emission permit issuance and global emissions. We find that once successfully implemented, these transfers consistently improve global welfare. Moreover, when permits are determined non-cooperatively by the countries, the implementation of GTT and ITMO leads to a reduction in global emissions.

Keywords: Green technology transfer; Internationally transferred mitigation outcomes; Permit markets; International coordination; Paris Agreement (search for similar items in EconPapers)
JEL-codes: F12 F18 H23 Q54 (search for similar items in EconPapers)
Pages: 33 pages
Date: 2025-10-16
New Economics Papers: this item is included in nep-ene, nep-env and nep-int
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Persistent link: https://EconPapers.repec.org/RePEc:hit:hiasdp:hias-e-154

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