
Open access
Datum
2018-11Typ
- Working Paper
ETH Bibliographie
yes
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Abstract
Innovation clusters combining public and private effort to develop breakthrough technologies promise greater technological advances to slow down climate change. We use a multi-country model with emissions permit trade to examine how international climate policy can incentivize countries to create such clusters. We find that a minimal carbon price is needed to attract applied research firms, but countries may nevertheless fail to invest in complementary research infrastructure. We construct a mechanism that leads to innovation clusters. It is a combination of low permit endowments for the country with the lowest costs to build the needed infrastructure, compensation for this country by profits from permit trade, and maximal possible permit endowments for the remaining countries. Mehr anzeigen
Persistenter Link
https://doi.org/10.3929/ethz-b-000302729Publikationsstatus
publishedZeitschrift / Serie
Economics Working Paper SeriesBand
Verlag
ETH Zurich, Center of Economic Research (CER-ETH)Thema
International permit markets; Carbon prices; Innovation clusters; Research infrastructure; Applied R&D; Climate change mitigation; ExternalitiesOrganisationseinheit
03729 - Gersbach, Hans / Gersbach, Hans
Zugehörige Publikationen und Daten
Is part of: https://doi.org/10.3929/ethz-b-000473185
ETH Bibliographie
yes
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