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http://hdl.handle.net/10419/53382
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| Title: | | Technology diffusion, abatement cost, and transboundary pollution  |
| Authors: | | Tarui, Nori Heal, Geoffrey |
| Issue Date: | | 2008 |
| Series/Report no.: | | Nota di lavoro // Fondazione Eni Enrico Mattei: Sustainable development 96.2008 |
| Abstract: | | This paper studies countries' incentives to develop advanced pollution abatement technology when technology may spillover across countries and pollution abatement is a global public good. We are motivated in part by the problem of global warming: a solution to this involves providing a global public good, and will surely require the development and implementation of new technologies. We show that at the Nash equilibrium of a simultaneous-move game with R&D investment and emission abatement, whether the free rider effect prevails and under-investment and excess emissions occur depends on the degree of technology spillovers and the effect of R&D on the marginal abatement costs. There are cases in which, contrary to conventional wisdom, Nash equilibrium investments in emissions reductions exceed the first-best case. |
| Subjects: | | International Environmental Agreement Pollution Abatement Costs Endogenous Technological Change |
| JEL: | | Q50 H87 D70 |
| Document Type: | | Working Paper |
| Appears in Collections: | | FEEM Working Papers, Fondazione Eni Enrico Mattei
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