International Technology Spillovers in Climate-Economy Models: Two Possible Approaches

39 Pages Posted: 29 Nov 2006

See all articles by Enrica De Cian

Enrica De Cian

Fondazione Eni Enrico Mattei (FEEM); CMCC - Centro Euro-Mediterraneo sui Cambiamenti Climatici

Date Written: November 2006

Abstract

This paper analyzes two possible methodologies of modeling international technology spillovers in a climate-economy CGE model. Technological change, by affecting productivity, energy and carbon intensity, eventually influences the amount of CO2 emissions, the costs and the timing of the policies targeted at their reduction. Technological change is here defined so as to include also the diffusion and adoption phase. In an increasingly integrated world, new products and technologies developed in one region will eventually diffuse internationally. The two approaches described in this paper are based on two mechanisms used to model technological change in climate models: learning curves, total factor productivity and the autonomous energy efficient improvement parameter. This paper considers spillovers mediated by international trade in capital goods. In particular, it looks at how imports machinery and equipments from the OECD countries can affect the technology variables related to CO2 emissions: learning rates in the first approach, productivity, energy and carbon intensity in the second one.

Keywords: Climate policy, International Trade, Learning Curves, International Technology Spillovers, Biased Technical Change

JEL Classification: F18, 033, Q54, Q55

Suggested Citation

De Cian, Enrica, International Technology Spillovers in Climate-Economy Models: Two Possible Approaches (November 2006). FEEM Working Paper No. 141.06. Available at SSRN: https://ssrn.com/abstract=946165 or http://dx.doi.org/10.2139/ssrn.946165

Enrica De Cian (Contact Author)

Fondazione Eni Enrico Mattei (FEEM) ( email )

Campo S. M. Formosa, Castello 5252
Venice, 30122
Italy

CMCC - Centro Euro-Mediterraneo sui Cambiamenti Climatici ( email )

via Augusto Imperatore, 16
Lecce, I-73100
Italy

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
100
Abstract Views
684
rank
278,781
PlumX Metrics