Technology Transfers for Climate Change

28 Pages Posted: 10 Aug 2016

See all articles by May Elsayyad

May Elsayyad

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

Florian Morath

Department of Public Finance, University of Innsbruck; Max Planck Institute for Tax Law and Public Finance

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Date Written: August 2016

Abstract

This article considers the transfer of cost‐reducing technology in the context of contributions to climate protection. We analyze a two‐period public goods model where later contributions can be based on better information, but delaying the mitigation effort is costly because of irreversible damages. Investments in technology affect the countries' timing of contributing. We show that countries have an incentive to provide cost‐reducing technology as this can lead to an earlier contribution of other countries and can therefore reduce a country's burden of contributing to the public good. Our results provide a rationale for the support of technology sharing initiatives.

Suggested Citation

Elsayyad, May and Morath, Florian, Technology Transfers for Climate Change (August 2016). International Economic Review, Vol. 57, Issue 3, pp. 1057-1084, 2016, Available at SSRN: https://ssrn.com/abstract=2820801 or http://dx.doi.org/10.1111/iere.12185

May Elsayyad (Contact Author)

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

Marstallplatz 1
Munich, 80539
Germany

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

Kaulbachstrasse 45
München, 80539
Germany

Florian Morath

Department of Public Finance, University of Innsbruck ( email )

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

Marstallplatz 1
Munich, 80539
Germany

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