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Kyoto Project Mechanisms and Technology Diffusion in Climate Policy

Author

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  • Matthieu Glachant

    (CERNA i3 - Centre d'économie industrielle i3 - Mines Paris - PSL (École nationale supérieure des mines de Paris) - PSL - Université Paris Sciences et Lettres - I3 - Institut interdisciplinaire de l’innovation - CNRS - Centre National de la Recherche Scientifique)

  • Yann Ménière

    (CERNA i3 - Centre d'économie industrielle i3 - Mines Paris - PSL (École nationale supérieure des mines de Paris) - PSL - Université Paris Sciences et Lettres - I3 - Institut interdisciplinaire de l’innovation - CNRS - Centre National de la Recherche Scientifique)

Abstract

The paper deals with the diffusion of GHG mitigation technologies in developing countries. We develop a model where an abatement technology is progressively adopted by firms and we use it to compare the Clean Development Mechanism (CDM) with a standard Cap and Trade scheme (C&T). In the presence of learning spillovers, we show that the CDM yields a higher social welfare than C&T if the first adopter receives CDM credits whereas the followers don't. This result lends support to the policy proposal of relaxing the CDM additionality constraint for projects which generate significant learning externalities.

Suggested Citation

  • Matthieu Glachant & Yann Ménière, 2011. "Kyoto Project Mechanisms and Technology Diffusion in Climate Policy," Post-Print hal-00488238, HAL.
    • Handle: RePEc:hal:journl:hal-00488238
    DOI: 10.1007/s10640-010-9439-5
    Note: View the original document on HAL open archive server: https://minesparis-psl.hal.science/hal-00488238v1
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    File URL: https://minesparis-psl.hal.science/hal-00488238v1/document
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    Cited by:

    1. Matthieu Glachant, 2013. "Greening Global Value Chains: Innovation and the International Diffusion of Technologies and Knowledge," OECD Green Growth Papers 2013/5, OECD Publishing.
    2. Pauline Lacour & Jean-Christophe Simon, 2011. "Developing economies in the current climate regime : new prospects for resilience and sustainability ? The case of CDM projects in Asia," Post-Print halshs-00676809, HAL.

    More about this item

    Keywords

    climate policy; technology diffusion; Kyoto Protocol; Clean Development Mechanism; emissions trading;
    All these keywords.

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