Climate Policy,Learning, and Technology Adoption in Small Countries |
| |
Authors: | Fuhai Hong Susheng Wang |
| |
Institution: | (1) Programme International Climate Policy, Hamburg Institute of International Economics (HWWA), Neuer Jungfernstieg 21 20347, Hamburg, Germany |
| |
Abstract: | A significant reduction in global greenhouse gas emissions requires international cooperation in emission abatement as well
as individual countries’ investment in the adoption of abatement technology. The existing literature on climate policy pays
insufficient attention to small countries, which account for a substantial proportion of global emission. In this study, we
investigate how climate policy and learning about climate damage affect investment in abatement technology in small countries.
We consider three alternative climate policy instruments: emission standards, harmonized taxes and auctioned permits. We say
that learning is feasible if an international environmental agreement (IEA) is formed after the resolution of uncertainty
about climate damage. We find that, either with learning and quadratic abatement costs or without learning, harmonized taxes
outperform emission standards and auctioned permits in terms of investment efficiency. Without learning, a large cost of nonparticipation
(that a country incurs) in the IEA can be beneficial to the country. Whether learning improves investment efficiency depends
on the size of this nonparticipation cost. |
| |
Keywords: | |
本文献已被 SpringerLink 等数据库收录! |
|