Abstract
We examine the impact of technological change on the stability of climate coalitions and explore how international cooperation on abatement affects the incentives of signatories to invest in R&D to reduce emissions. We compare the case of no technological change with exogenous technological change and induced technological change. In the latter case R&D investments are endogenous. We find that the highest equilibrium pay-offs are achieved in the case of induced technological change. Furthermore, the formation of a climate coalition boosts R&D investments in carbon abatement technologies in signatory countries
Original language | English |
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Pages (from-to) | 612-634 |
Journal | Metroeconomica : international review of economics |
Volume | 62 |
Issue number | 4 |
DOIs | |
Publication status | Published - 2011 |
Keywords
- climatic change
- international agreements
- technology assessment
- development spillovers
- technical change
- environmental agreements
- co2 abatement
- coalitions
- stability
- economics
- future
- models
- policy