Journal article
Non-cooperative and cooperative climate policies with anticipated breakthrough technology
- Abstract:
- Global warming can be curbed by pricing carbon emissions and thus substituting fossil fuel with renewable energy consumption. Breakthrough technologies (e.g., fusion energy) can reduce the cost of such policies. However, the chance of such a technology coming to market depends on investment. We model breakthroughs as an irreversible tipping point in a multi-country world, with different degrees of international cooperation. We show that international spill-over effects of R&D; in carbon-free technologies lead to double free-riding, strategic over-pollution and underinvestment in green R&D;, thus making climate change mitigation more difficult. We also show how the demand structure determines whether carbon pricing and R&D; policies are substitutes or complements.
- Publication status:
- Published
- Peer review status:
- Peer reviewed
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Access Document
- Files:
-
-
(Preview, Accepted manuscript, pdf, 1.4MB, Terms of use)
-
- Publisher copy:
- 10.1016/j.jeem.2018.04.001
Authors
- Publisher:
- Elsevier
- Journal:
- Journal of Environmental Economics and Management More from this journal
- Volume:
- 97
- Pages:
- 42-66
- Publication date:
- 2018-04-03
- Acceptance date:
- 2018-04-02
- DOI:
- EISSN:
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1096-0449
- ISSN:
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0095-0696
- Language:
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English
- Keywords:
- Pubs id:
-
pubs:853774
- UUID:
-
uuid:358cd6a7-1bd0-4c63-a2dc-bd0afd8e0c45
- Local pid:
-
pubs:853774
- Source identifiers:
-
853774
- Deposit date:
-
2019-05-16
Terms of use
- Copyright holder:
- Jaakkola and van der Ploeg
- Copyright date:
- 2018
- Notes:
- Copyright © 2018 Published by Elsevier Inc. This is the accepted manuscript version of the article. The final version is available online from Elsevier at: https://doi.org/10.1016/j.jeem.2018.04.001
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