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TECHNOLOGY TRANSFERS FOR CLIMATE CHANGE
Author(s) -
Elsayyad May,
Morath Florian
Publication year - 2016
Publication title -
international economic review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 2.658
H-Index - 86
eISSN - 1468-2354
pISSN - 0020-6598
DOI - 10.1111/iere.12185
Subject(s) - damages , incentive , context (archaeology) , public good , climate change , business , technology transfer , developing country , economics , technological change , public economics , environmental economics , industrial organization , natural resource economics , risk analysis (engineering) , microeconomics , international trade , economic growth , macroeconomics , political science , paleontology , ecology , law , biology
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.