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Greenhouse gas emission, mitigation and innovation of adaptation technology in a North–South economy

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  • Onuma, Ayumi
  • Arino, Yosuke

Abstract

Adaptation has the attributes of a private good that aims to protect a country from climate change, while mitigation, which contributes to the reduction of worldwide greenhouse gas emissions, has the properties of a public good. This paper attempts to investigate how the innovation of adaptation technology by a developed country (the North) may affect a developing country (the South) as well as the North through changes of mitigation in both countries. We show that the efficacy of adaptation determines the level of both countries' mitigation, and thereby causes them to be better or worse off. For both countries to be better off, it is required that the innovation be neither very effective nor very ineffective. Furthermore, we demonstrate that by introducing an international transfer system in which the North is taxed according to the level of adaptation, both countries can be better off even if the innovation is highly effective.

Suggested Citation

  • Onuma, Ayumi & Arino, Yosuke, 2011. "Greenhouse gas emission, mitigation and innovation of adaptation technology in a North–South economy," Environment and Development Economics, Cambridge University Press, vol. 16(6), pages 639-656, December.
  • Handle: RePEc:cup:endeec:v:16:y:2011:i:06:p:639-656_00
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    Cited by:

    1. Hiroaki Sakamoto & Masako Ikefuji & Jan R. Magnus, 2020. "Adaptation for Mitigation," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 75(3), pages 457-484, March.
    2. Daiju Narita & Martin F. Quaas, 2014. "Adaptation To Climate Change And Climate Variability: Do It Now Or Wait And See?," Climate Change Economics (CCE), World Scientific Publishing Co. Pte. Ltd., vol. 5(04), pages 1-28.
    3. Lazkano, Itziar & Marrouch, Walid & Nkuiya, Bruno, 2016. "Adaptation to climate change: how does heterogeneity in adaptation costs affect climate coalitions?," Environment and Development Economics, Cambridge University Press, vol. 21(6), pages 812-838, December.
    4. Fuhai Hong, 2014. "Technology transfer with transboundary pollution: A signalling approach," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 47(3), pages 953-980, August.
    5. Ralph Winkler, 2023. "On the Relationship between Adaptation and Mitigation," CESifo Working Paper Series 10371, CESifo.
    6. Claudia Schwirplies, 2015. "Adaptation vs. climate protection: Responses to climate change and policy preferences of individuals in China, Germany, and the USA," MAGKS Papers on Economics 201502, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).

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