Linking developing country's cooperation on climate control with industrialized country's R&D and technology transfer

Kemfert, Claudia and Zhang, ZhongXiang (2003): Linking developing country's cooperation on climate control with industrialized country's R&D and technology transfer.

Abstract

Using a world multi-sectoral, multi-regional trade model, this paper has investigated the economic and environmental implications of climate control coalitions cooperating on R&D investment that triggers low cost environmentally friendly technologies. We start with the Kyoto scenario where all Annex B industrialized countries (including the US) are assumed to individually meet their mandatory Kyoto greenhouse gas emissions reduction targets. Next, we consider industrialized country's cooperating on climate control and R&D-induced technological innovations. We then expand climate control coalition to include developing countries. Finally, we investigate the implications of additional R&D investment from industrialized countries to developing countries. Our results clearly demonstrate that cooperation on climate control and R&D among industrialized countries induces technological innovations, lowers their compliance costs and thus places less strong economic burden on these countries. But without developing countries getting involved in climate control and R&D investment, such a cooperation alone is unable to completely offset negative economic effects of the emissions reduction commitments on both industrialized countries themselves and developing countries. Recognizing the importance of developing countries’ participation and their legitimate demand for adequate technology transfer and financing, the paper concludes that linking developing country's cooperation on climate control with industrialized country's R&D and technology transfer would produce win-win-win outcomes for both developing countries and industrialized countries and for the global environment.

• Item Type: MPRA Paper
• Language: English
• Keywords: Kyoto Protocol; climate change mitigation; R&D; CGE analysis
• Subjects: C - Mathematical and Quantitative Methods > C6 - Mathematical Methods ; Programming Models ; Mathematical and Simulation Modeling > C68 - Computable General Equilibrium Models; Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q5 - Environmental Economics > Q55 - Technological Innovation; O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development > O13 - Agriculture ; Natural Resources ; Energy ; Environment ; Other Primary Products; O - Economic Development, Innovation, Technological Change, and Growth > O3 - Innovation ; Research and Development ; Technological Change ; Intellectual Property Rights > O32 - Management of Technological Innovation and R&D; C - Mathematical and Quantitative Methods > C7 - Game Theory and Bargaining Theory; Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q5 - Environmental Economics > Q54 - Climate ; Natural Disasters and Their Management ; Global Warming; F - International Economics > F1 - Trade > F18 - Trade and Environment; Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q5 - Environmental Economics > Q52 - Pollution Control Adoption and Costs ; Distributional Effects ; Employment Effects; Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q4 - Energy > Q48 - Government Policy; Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q5 - Environmental Economics > Q56 - Environment and Development ; Environment and Trade ; Sustainability ; Environmental Accounts and Accounting ; Environmental Equity ; Population Growth; Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q4 - Energy > Q43 - Energy and the Macroeconomy; Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q5 - Environmental Economics > Q58 - Government Policy

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