Non-cooperative and cooperative climate policies with anticipated breakthrough technology
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 mode...
| Main Authors: | , |
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| Format: | Journal article |
| Language: | English |
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Elsevier
2018
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| _version_ | 1797062392573591552 |
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| author | Jaakkola, N Van Der Ploeg, F |
| author_facet | Jaakkola, N Van Der Ploeg, F |
| author_sort | Jaakkola, N |
| collection | OXFORD |
| description | 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. |
| first_indexed | 2024-03-06T20:44:53Z |
| format | Journal article |
| id | oxford-uuid:358cd6a7-1bd0-4c63-a2dc-bd0afd8e0c45 |
| institution | University of Oxford |
| language | English |
| last_indexed | 2024-03-06T20:44:53Z |
| publishDate | 2018 |
| publisher | Elsevier |
| record_format | dspace |
| spelling | oxford-uuid:358cd6a7-1bd0-4c63-a2dc-bd0afd8e0c452022-03-26T13:32:37ZNon-cooperative and cooperative climate policies with anticipated breakthrough technologyJournal articlehttp://purl.org/coar/resource_type/c_dcae04bcuuid:358cd6a7-1bd0-4c63-a2dc-bd0afd8e0c45EnglishSymplectic Elements at OxfordElsevier2018Jaakkola, NVan Der Ploeg, FGlobal 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. |
| spellingShingle | Jaakkola, N Van Der Ploeg, F Non-cooperative and cooperative climate policies with anticipated breakthrough technology |
| title | Non-cooperative and cooperative climate policies with anticipated breakthrough technology |
| title_full | Non-cooperative and cooperative climate policies with anticipated breakthrough technology |
| title_fullStr | Non-cooperative and cooperative climate policies with anticipated breakthrough technology |
| title_full_unstemmed | Non-cooperative and cooperative climate policies with anticipated breakthrough technology |
| title_short | Non-cooperative and cooperative climate policies with anticipated breakthrough technology |
| title_sort | non cooperative and cooperative climate policies with anticipated breakthrough technology |
| work_keys_str_mv | AT jaakkolan noncooperativeandcooperativeclimatepolicieswithanticipatedbreakthroughtechnology AT vanderploegf noncooperativeandcooperativeclimatepolicieswithanticipatedbreakthroughtechnology |