'The Voracity Effect' and Climate Change: The Impact of Clean Technologies

33 Pages Posted: 9 Feb 2011

See all articles by Hassan Benchekroun

Hassan Benchekroun

McGill University - Department of Economics

Amrita Ray Chaudhuri

University of Winnipeg - Department of Economics; Tilburg University - Tilburg University School of Economics and Management; Tilburg Law and Economics Center (TILEC)

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Date Written: February 7, 2011

Abstract

We show that a technological breakthrough that reduces CO2 emissions per output can exacerbate the climate change problem: countries may respond by raising their emissions resulting in an increase of the stock of pollution that may reduce welfare. Using parameter values based on empirical evidence we obtain that any 'new technology' that reduces the emissions of CO2 per dollar of GDP by less than 76% from their current level is welfare reducing. Developing clean technologies as well as transferring “cleaner” technologies to developing countries make a global post-Kyoto agreement over the control of emissions all the more urgent.

Keywords: Transboundary Pollution, Renewable Resource, Climate Change, Clean Technologies, Differential Games

JEL Classification: Q20, Q54, Q55, Q58, C73

Suggested Citation

Benchekroun, Hassan and Ray Chaudhuri, Amrita, 'The Voracity Effect' and Climate Change: The Impact of Clean Technologies (February 7, 2011). FEEM Working Paper No. 5.2011, Available at SSRN: https://ssrn.com/abstract=1756742 or http://dx.doi.org/10.2139/ssrn.1756742

Hassan Benchekroun (Contact Author)

McGill University - Department of Economics ( email )

855 Sherbrooke Street West
Montreal, QC H3A 2T7
Canada

Amrita Ray Chaudhuri

University of Winnipeg - Department of Economics ( email )

Winnipeg, Manitoba R3B 2E9
Canada

Tilburg University - Tilburg University School of Economics and Management ( email )

P.O. Box 90153
Tilburg, 5000 LE
Netherlands

Tilburg Law and Economics Center (TILEC) ( email )

Warandelaan 2
Tilburg, 5000 LE
Netherlands

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