IDEAS home Printed from https://ideas.repec.org/a/bpj/bejeap/v24y2024i3p975-997n1011.html
   My bibliography  Save this article

Initial Payment and Refunding Scheme for Climate Change Mitigation and Technological Development Among Heterogeneous Countries

Author

Listed:
  • Takashima Nobuyuki

    (School of Economics, 12803 Hiroshima University , 1-2-1 Kagamiyama, Higashi-Hiroshima 739-8525, Japan)

Abstract

We examine international environmental agreements (IEAs) in which heterogeneous countries work together to not only participate in the abatement of greenhouse gas emissions but also develop breakthrough technologies. In this paper, the country with the most advanced technology (i.e. the technological leader) develops a new abatement technology and distributes it to other countries (i.e. technological laggards) through licensing. We design a new mechanism to achieve cooperation among heterogeneous countries through an initial payment and refunding (IPR) scheme and licensing involving third-party organizations (TPOs). Under our new IPR scheme with licensing, the cost incurred by a technology leader in developing new technology is covered by licensing fees using a portion of the initial payments collected from technological laggards by a TPO. As a result, TPOs sustain IEAs by flexibly adjusting technological laggards’ share of costs for licensing, comprising initial payments and refunds, and the amount of the licensing payment made to the technological leader.

Suggested Citation

  • Takashima Nobuyuki, 2024. "Initial Payment and Refunding Scheme for Climate Change Mitigation and Technological Development Among Heterogeneous Countries," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 24(3), pages 975-997.
    • Handle: RePEc:bpj:bejeap:v:24:y:2024:i:3:p:975-997:n:1011
    DOI: 10.1515/bejeap-2023-0382
    as

    Download full text from publisher

    File URL: https://doi.org/10.1515/bejeap-2023-0382
    Download Restriction: For access to full text, subscription to the journal or payment for the individual article is required.
    File URL: https://libkey.io/10.1515/bejeap-2023-0382?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bpj:bejeap:v:24:y:2024:i:3:p:975-997:n:1011. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Peter Golla (email available below). General contact details of provider: https://www.degruyter.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.