A full participation agreement on global emission reduction through strategic investments in R & D.

Kratzsch, Uwe; Sieg, Gernot and Stegemann, Ulrike (2010): A full participation agreement on global emission reduction through strategic investments in R & D. Unpublished.

Abstract

If an emission reduction agreement with participation of all players is not enforceable because politicians are too myopic or not able to commit themselves to sustainable policies or costs of reducing emis- sions are too high, strategic investments in research and development (R&D) of green technology, for example sustainable drive-trains, can pave the way for a future treaty. Although no player will rationally reduce emissions on its own, investments in R&D by at least one player can change the strategic situation of negotiations to control emissions: Emission abatement costs will decrease so that a treaty with full par- ticipation can be achieved in future periods through time consistent sustainable policies.

• Item Type: MPRA Paper
• Language: English
• Keywords: emissions; discount factor; commitment; endogenous technical change; repeated prisoner’s dilemma
• Subjects: O - Economic Development, Technological Change, and Growth > O3 - Technological Change; Research and Development > O30 - General; H - Public Economics > H4 - Publicly Provided Goods > H41 - Public Goods; F - International Economics > F5 - International Relations and International Political Economy > F53 - International Agreements and Observance; International Organizations; Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics > Q5 - Environmental Economics > Q54 - Climate; Natural Disasters

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