Climate Policy with Technology Transfers and Permit Trading

Carsten Helm and Stefan Pichler ()

No 31 / 2014, ZenTra Working Papers in Transnational Studies from ZenTra - Center for Transnational Studies

Abstract: In this paper, we analyze technology transfers (TT) and tradable emission rights, which are core is-sues of the ongoing climate negotiations. Subsidizing TT leads to the adoption of better abatement technologies in the South, thereby reducing the international permit price. This is beneficial for the North as long as it is a permit buyer; hence it chooses to subsidize TT. By contrast, the permit selling South suffers from the lower permit price and its welfare usually deteriorates, despite receiving subsidies. We also consider how TT affects countries’ non-cooperative choices of permit endowments and find that it tends to reduce overall emissions. Finally, a simple numerical simulation model illustrates the results and explores some further comparative statics.

Keywords: emissions trading; technology transfer; international climate policy; additionality; subsidies (search for similar items in EconPapers)
JEL-codes: D62 D78 H41 O38 Q58 (search for similar items in EconPapers)
Pages: 24 pages
Date: 2014-01, Revised 2014-01
New Economics Papers: this item is included in nep-ene and nep-env
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Citations: View citations in EconPapers (1)

Downloads: (external link)
http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2387293 First version, November 2013 (application/pdf)

Related works:
Journal Article: Climate Policy with Technology Transfers and Permit Trading (2015)
Working Paper: Climate Policy with Technology Transfers and Permit Trading (2011)
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Persistent link: https://EconPapers.repec.org/RePEc:zen:wpaper:31

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