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Technology Transfers for Climate Change

39 Pages Posted: 13 Jan 2014  

May Elsayyad

Max Planck Institute for Tax Law and Public Finance; Ludwig Maximilian University of Munich - Munich Graduate School of Economics (MGSE)

Florian Morath

Goethe University Frankfurt; Max Planck Institute for Tax Law and Public Finance

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Date Written: December 30, 2013

Abstract

This paper considers investments in cost-reducing technology in the context of contributions to climate protection. Contributions to mitigating climate change are analyzed in a two-period model where later contributions can be based on better information, but delaying the contribution to the public good is costly because of irreversible damages. We show that, when all countries have access to the new technology, countries have an incentive to invest in technology because this can lead to an earlier contribution of other countries and therefore reduce a country’s burden of contributing to the public good. Our results provide a rationale for the support of technology sharing initiatives.

Keywords: private provision of public goods, environmental public goods, technology sharing, uncertainty, irreversibility

JEL Classification: H410, Q520, D620, D830, F530

Suggested Citation

Elsayyad, May and Morath, Florian, Technology Transfers for Climate Change (December 30, 2013). CESifo Working Paper Series No. 4521. Available at SSRN: https://ssrn.com/abstract=2378201

May Elsayyad

Max Planck Institute for Tax Law and Public Finance ( email )

Marstallplatz 1
Munich, 80539
Germany

Ludwig Maximilian University of Munich - Munich Graduate School of Economics (MGSE)

Kaulbachstrasse 45
München, 80539
Germany

Florian Morath (Contact Author)

Goethe University Frankfurt ( email )

Grüneburgplatz 1
Frankfurt am Main, 60323
Germany

Max Planck Institute for Tax Law and Public Finance ( email )

Marstallplatz 1
Munich, 80539
Germany

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