Global Warming, Technology Transfer and Trade in Carbon Energy: Challenge or Threat?

Stephan, Gunter; Müller-Fürstenberger, Georg (July 2012). Global Warming, Technology Transfer and Trade in Carbon Energy: Challenge or Threat? (Discussion Papers 12-06). Bern: Department of Economics

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Is it possible to combat global climate change through North-to-South technology transfer
even without a global climate treaty? Or do carbon leakage and the rebound effect imply
that it is possible to take advantage of technological improvements under the umbrella of a
global arrangement only? For answering these questions a world with full international cooperation is compared with a world, where countries act non-cooperatively. More recisely,
in case of non-cooperation two cases are discussed. The first one is called Kyoto-plus and the second one labeled Kyoto-reversed. Kyoto-plus means that the North decides: (1) to unilaterally reduce its domestic greenhouse gas emissions and (2), to transfer technological knowledge to the South. If Kyoto-reversed is considered, the North decides on transferring technology while the South commits itself to reduce emissions. Rebound and leakage effects hinder a sustainable and welfare improving solution of the climate problem.

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