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Induced innovation and international environmental agreements: evidence from the Ozone Regime

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  • Dugoua, Eugenie

Abstract

This paper revisits one of the rare success stories in global environmental cooperation: the Montreal Protocol and the phase-out of ozone-depleting substances. I show that the protocol increased science and innovation on alternatives to ozone-depleting substances, and argue that agreements can indeed be useful to solving global public goods problems. This contrasts with game-theoretical predictions that agreements occur only when costs to the players are low, and with the often-heard narrative that substitutes were readily available. I reconcile theory and empirics by discussing the role of induced innovation in models of environmental agreements.

Suggested Citation

  • Dugoua, Eugenie, 2023. "Induced innovation and international environmental agreements: evidence from the Ozone Regime," LSE Research Online Documents on Economics 120482, London School of Economics and Political Science, LSE Library.
    • Handle: RePEc:ehl:lserod:120482
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    More about this item

    Keywords

    induced innovation; directed technological change; green innovation;
    All these keywords.

    JEL classification:

    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation

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