Citation

Discussion Paper Details

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Full Details

Title: Technology Treaties and Climate Change

Author(s): Hans Gersbach and Marie-Catherine Riekhof

Publication Date: October 2019

Keyword(s): Climate Change Mitigation - Technology Promotion - R&D - International Emissions Permit Markets - International Treaty - Externalities

Programme Area(s): Industrial Organization

Abstract: We introduce an international technology treaty ("Tech Treaty") that couples the funding of research for a more advanced abatement technology with an international emissions permit market. While each country decides on domestic permit issuance, a fraction of these permits is auctioned by an international agency. Auction revenues scale up license revenues for the innovators of abatement technologies. We show that such a treaty increases innovations and decreases emissions under plausible conditions compared to an emissions trading system without additional technology agreement. Finally, we discuss how a Tech Treaty may inspire next steps in existing technology programs.

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Bibliographic Reference

Gersbach, H and Riekhof, M. 2019. 'Technology Treaties and Climate Change'. London, Centre for Economic Policy Research. https://cepr.org/active/publications/discussion_papers/dp.php?dpno=14033