Technology Diffusion and the Stability of Climate Coalitions

19 Pages Posted: 28 Nov 2000

See all articles by Richard S. J. Tol

Richard S. J. Tol

VU University Amsterdam - Institute for Environmental Studies (IVM); Carnegie Mellon University - Center for Integrated Study of the Human Dimensions of Global Change; University of Hamburg - Centre for Marine and Climate Research (ZMK); Princeton University

Lise Wietze

VU University Amsterdam - Institute for Environmental Studies (IVM)

Bob van der Zwaan

Columbia University - Lenfest Center for Sustainable Energy, Earth Institute

Date Written: February 2000

Abstract

Free-riding is a major problem for international climate policy. A country can take advantage of other countries' emission reduction without contributing to abatement policies itself. Game theory suggests that issue linkage may help to overcome free-riding. Earlier studies suggest that if negotiations on greenhouse gas emission reduction are coupled to negotiation on technology transfer, the incentives to co-operate increase. This study confirms that finding. A country has less reason to free-ride if free-riding implies that the countries loses access to desirable, foreign technologies. We also show that, in many cases, it hurts to deny another country access to domestic technologies, if that country retaliates by withholding its technologies. We further show that the losses of withholding abatement technologies are small relative to the gains of free-riding. So, linking greenhouse gas emission reduction with technology diffusion helps to deter free-riding, but only a little bit, and only if the two issues are automatically linked.

JEL Classification: Q28, Q38

Suggested Citation

Tol, Richard S. J. and Wietze, Lise and van der Zwaan, Bob, Technology Diffusion and the Stability of Climate Coalitions (February 2000). FEEM Working Paper No. 20.2000. Available at SSRN: https://ssrn.com/abstract=229260 or http://dx.doi.org/10.2139/ssrn.229260

Richard S. J. Tol (Contact Author)

VU University Amsterdam - Institute for Environmental Studies (IVM) ( email )

De Boelelaan 1115
Amsterdam, 1081 HV
Netherlands
+31 20 444 9555 (Phone)
+31 20 444 9553 (Fax)

Carnegie Mellon University - Center for Integrated Study of the Human Dimensions of Global Change

Pittsburgh, PA 15213-3890
United States

University of Hamburg - Centre for Marine and Climate Research (ZMK)

Troplowitzstrasse 7
D-22529 Hamburg
Germany

Princeton University ( email )

22 Chambers Street
Princeton, NJ 08544-0708
United States

Lise Wietze

VU University Amsterdam - Institute for Environmental Studies (IVM) ( email )

De Boelelaan 1115
Amsterdam, 1081 HV
Netherlands
+31-20-4449503 (Phone)
+31-20-4449553 (Fax)

Bob Van der Zwaan

Columbia University - Lenfest Center for Sustainable Energy, Earth Institute ( email )

314 Low Library
535 West 116th Street, MC 4327
New York, NY 10027
United States

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