Abstract
The cost of greenhouse gas (GHG) mitigation over time depends on both the rate of technical change in leading-edge technologies and the diffusion of knowledge and capabilities throughout international markets. This paper presents a framework developed by the U.S. Environmental Protection Agency (EPA) and RTI International (RTI) for incorporating technical change in non-CO2 GHG mitigation projections over time. An engineering (bottom-up) approach is used to model technical change as a set of price and productivity factors that change over time as a function of technology advances and the location of developing countries relative to the technology efficiency frontier. S-shaped diffusion curves are generated, which demonstrate the maturity of the market for a given technology in a given region. The framework is demonstrated for coal mine methane mitigation technologies in the United States and China, but it is applicable for the full range of technology adoption issues.
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© 2005 Springer Science+Business Media, Inc.
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Gallaher, M., Delhotal, K.C. (2005). Modeling the Impact of Technical Change on Emissions Abatement Investments in Developing Countries. In: Link, A.N., Scherer, F.M. (eds) Essays in Honor of Edwin Mansfield. Springer, Boston, MA. https://doi.org/10.1007/0-387-25022-0_24
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DOI: https://doi.org/10.1007/0-387-25022-0_24
Publisher Name: Springer, Boston, MA
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