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- Title
The Incentives for North-South Transfer of Climate-Mitigation Technologies with Trade in Polluting Goods.
- Authors
Glachant, Matthieu; Ing, Julie; Nicolai, Jean
- 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 has no incentive to share its technology either before or after the agreement. Technology transfer commitments may be included in the agreement, but with no effect on global emissions and global surplus. The only impacts are distributional, technology transfers and side payments may be substitute instruments.
- Subjects
INCENTIVES in conservation of natural resources; CLIMATE change mitigation; ECONOMIC equilibrium; ECONOMIC competition; TECHNOLOGY transfer
- Publication
Environmental & Resource Economics, 2017, Vol 66, Issue 3, p435
- ISSN
0924-6460
- Publication type
Article
- DOI
10.1007/s10640-016-0087-2