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Environmental and Resource Economics

, Volume 71, Issue 2, pp 507–527 | Cite as

Climate Change Mitigation with Technology Spillovers

  • Renaud FoucartEmail author
  • Grégoire Garsous
Article

Abstract

We explore the implications of an increase in clean technology spillovers between developed and developing countries. We build a game of abatements in which players are linked with technology spillovers determined by an initial choice of absorptive capacities by developing countries. We show that, within a non-cooperative framework, the response of clean technology investments in developed countries to an increase in cross-country technology spillovers is ambiguous. If the marginal benefits of these additional abatements are not sufficiently high, developed countries have a strategic incentive to decrease investments. Such a strategic response jeopardizes the initial effects of an increase in technology spillovers on climate change mitigation and decreases the incentives for developing countries to enhance their absorptive capacities.

Keywords

Climate change Cross-country spillovers Abatements Technology investments 

JEL Classification

H40 Q54 Q55 Q56 

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Copyright information

© Springer Science+Business Media B.V. 2017

Authors and Affiliations

  1. 1.Humboldt UniversityBerlinGermany
  2. 2.Université libre de Bruxelles, ECARESBrusselsBelgium

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