International Climate Agreements Under Induced Technological Change

23 Pages Posted: 18 Oct 2011

See all articles by Miyuki Nagashima

Miyuki Nagashima

Wageningen University

Hans‐Peter Weikard

affiliation not provided to SSRN

Rob Dellink

Wageningen UR - Environmental Economics and Natural Resources Group; Organization for Economic Co-Operation and Development (OECD)

Date Written: November 2011

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.

Suggested Citation

Nagashima, Miyuki and Weikard, Hans‐Peter and Dellink, Rob, International Climate Agreements Under Induced Technological Change (November 2011). Metroeconomica, Vol. 62, Issue 4, pp. 612-634, 2011, Available at SSRN: https://ssrn.com/abstract=1945610 or http://dx.doi.org/10.1111/j.1467-999X.2011.04132.x

Miyuki Nagashima (Contact Author)

Wageningen University ( email )

Hollandseweg 1
6700 HB Wageningen, 6706KN
Netherlands

Hans‐Peter Weikard

affiliation not provided to SSRN

No Address Available

Rob Dellink

Wageningen UR - Environmental Economics and Natural Resources Group ( email )

P.O. Box 8130
Wageningen, 6700 EW
Netherlands
+31 (0)317 4 82009 (Phone)
+31 (0)317 4 84933 (Fax)

HOME PAGE: http://www.sls.wau.nl/enr/staff/dellink/

Organization for Economic Co-Operation and Development (OECD) ( email )

Paris
France

HOME PAGE: http://www.oecd.org/env/cc/econ

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