Climate change—environmental and technology policies in a strategic context |
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Authors: | Alistair Ulph David Ulph |
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Affiliation: | (1) Faculty of Humanities, University of Manchester, Oxford Road, Manchester, M13 9PL, UK;(2) St. Salvator’s College, University of St. Andrews, St. Andrews, Fife, KY16 9AL, Scotland |
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Abstract: | There are a number of features of climate change which make it one of the most challenging problems confronting policy makers and policy analysts. In this paper we consider three such features: (i) climate change is a global pollutant so there are strategic interactions between governments over climate policy; (ii) cutting greenhouse gas emissions can have significant cost effects across a number of sectors of the economy, raising concerns about the implications of climate change policy on competitive advantage; (iii) the long-time scales on which climate change operates means that an important dimension of climate change policy is policy towards R&D to cut the costs of dealing with climate change. In Ulph and Ulph (1996) [Ulph A, Ulph D (1996) In: Carraro C, Katsoulacos Y, Xepapadeas A (eds) Environmental policy and market structure. Kluwer, Dordrecht, pp 181–208] we presented a model to analyse these issues, but considered only environmental policies. In this paper we extend that analysis to allow for both a richer set of policy instruments (environmental and technology policies) and a richer strategic context. |
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Keywords: | Climate change Environmental and technology policies Strategic output effect Environmental spillover investment effect Information sharing asymmetries |
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