On the Mechanism of International Technology Diffusion for Energy Technological Progress

38 Pages Posted: 25 Mar 2015

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: March 24, 2015

Abstract

International diffusion of energy-saving technologies has received considerable attention in recent energy and climate economics studies. As a helpful methodological complement to the existing large-scale CGE/IAM–based modelling for energy and climate policy studies, this paper contributes to a transparent analytical model for an economically intuitive exposition on the fundamental mechanism of international technology diffusion for energy technological growth. We first develop an efficiency-improving vertical innovation model where energy technological progress is specified as an improvement in primary energy use efficiency. Then a variety-expanding horizontal innovation model is presented where energy technological progress is described as an expansion of energy technology variety. We show that in both models there is a cross-country convergence in the growth rate of energy technology in a long-run balanced growth path, but the absolute levels of energy technology tend to diverge due to cross-country differences in indigenous innovation efficiencies and knowledge absorptive capacities. An economy with a stronger capacity of absorbing foreign knowledge diffusion and undertaking indigenous research tends to have a higher level of energy technology.

Keywords: Technological Progress, Energy Technology, International Technology Diffusion, Endogenous Technological Change

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 Technological Progress (March 24, 2015). FEEM Working Paper No. 024.2015. Available at SSRN: https://ssrn.com/abstract=2584473 or http://dx.doi.org/10.2139/ssrn.2584473

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

Register to save articles to
your library

Register

Paper statistics

Downloads
29
Abstract Views
391
PlumX Metrics