Universität zu Köln

Gersbach, Hans, Oberpriller, Quirin and Scheffel, Martin (2019). Double Free-Riding in Innovation and Abatement: A Rules Treaty Solution. Environ. Resour. Econ., 73 (2). S. 449 - 484. DORDRECHT: SPRINGER. ISSN 1573-1502

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Abstract

In addressing climate change, both abatement itself and the innovation of superior abatement technologies are exposed to free-riding. To examine this double free-riding problem, we develop a multi-country model with an international market for emission permits and licenses for abatement technologies. We show that the two problems are mutually reinforcing. To address the double free-riding problem we propose a rules treaty for innovation and abatement that consists of two rules, an allocation rule and a refunding rule. The allocation rule determines the share of issued emission permits that each country can directly allocate to its domestic firms, while the remainder is handed over to an international agency. The refunding rule determines how the agency's revenues from selling these permits to firms are redistributed. A fraction is given to those countries that successfully develop superior abatement technologies provided they license the technology free of charge to all countries. The remaining revenues are redistributed to all countries. These rules can approximate globally optimal abatement and innovation levels.

Item Type:	Journal Article
Creators:	Creators Email ORCID ORCID Put Code Gersbach, Hans UNSPECIFIED UNSPECIFIED UNSPECIFIED Oberpriller, Quirin UNSPECIFIED UNSPECIFIED UNSPECIFIED Scheffel, Martin UNSPECIFIED UNSPECIFIED UNSPECIFIED
URN:	urn:nbn:de:hbz:38-147185
DOI:	10.1007/s10640-018-0270-8
Journal or Publication Title:	Environ. Resour. Econ.
Volume:	73
Number:	2
Page Range:	S. 449 - 484
Date:	2019
Publisher:	SPRINGER
Place of Publication:	DORDRECHT
ISSN:	1573-1502
Language:	English
Faculty:	Unspecified
Divisions:	Unspecified
Subjects:	no entry
Uncontrolled Keywords:	Keywords Language CLIMATE POLICY; TECHNOLOGY; NEGOTIATIONS; TAXES Multiple languages Economics; Environmental Studies Multiple languages
Refereed:	Yes
URI:	http://kups.ub.uni-koeln.de/id/eprint/14718