On the Mechanism of International Technology Diffusion for Energy Productivity Growth

28 Pages Posted: 26 Apr 2014

See all articles by Wei Jin

Wei Jin

School of Economics, University of New South Wales

ZhongXiang Zhang

Tianjin University - Ma Yinchu School of Economics

Date Written: April 24, 2014

Abstract

International diffusion of advanced environment and energy-related technologies has received much attention in recent environmental economics studies. As a much needed complement to the “black box” complex numerical modelling, this paper contributes to developing a simple, intuitive analytical framework to unveil the mechanism of international technology diffusion for energy productivity growth. We draw on the Solow growth model to build a benchmark exogenous framework to explore the basic mechanism of energy technology diffusion. This exogenous model is then extended to a Romer-type endogenous one where the R&D-induced expansion of energy technology varieties is used to represent the deep structure of technology diffusion. We show that the growth rates of energy productivity are the same across countries in the balanced growth path equilibrium, but the cross-country differences in the efficiency of foreign technology absorption and indigenous innovation lead to cross-country divergence in the levels of energy productivity. The economy that has a stronger capacity of assimilating foreign technology diffusion and undertaking indigenous innovation tends to gain a higher level of energy productivity.

Keywords: Technological Innovation, Energy Technology Diffusion, Solow Growth Model, Endogenous Growth Model

JEL Classification: Q55, Q58, Q43, Q48, O13, O31, O33, O44, F18

Suggested Citation

Jin, Wei and Zhang, ZhongXiang, On the Mechanism of International Technology Diffusion for Energy Productivity Growth (April 24, 2014). FEEM Working Paper No. 40.2014. Available at SSRN: https://ssrn.com/abstract=2428793 or http://dx.doi.org/10.2139/ssrn.2428793

Wei Jin

School of Economics, University of New South Wales ( email )

Kensington
High St
Sydney, NSW 2052
Australia

ZhongXiang Zhang (Contact Author)

Tianjin University - Ma Yinchu School of Economics ( email )

92 Weijin Road, Nankai District
Tianjin 300072
China
+86 22 87370560 (Phone)

HOME PAGE: http://ideas.repec.org/f/pzh243.html

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