Climate-friendly Technologies Research Articles

Horizontal and Vertical Reinforcement in Global Climate Governance

This paper is dealing with mechanisms that can accelerate the global diffusion of climate-friendly technologies. The accelerated diffusion of low-carbon technology innovation can possibly be achieved by interactive processes such as: (1) mutually reinforcing cycles of policy-induced domestic market growth, innovation, and policy feedback; (2) lead markets and political lesson-drawing, the reinforced international adoption of innovations from pioneer countries; and (3) interaction between the vertical and horizontal dynamics in multi-level systems of governance. The three mechanisms are not exclusive. They can overlap and reinforce each other. After a theoretical introduction they will be described. The empirical focus is on the European system of multi-level climate governance. The paper draws some final conclusions for policy makers.

The development of policy instruments in supporting low-carbon governance in China

Abstract This paper examines the development of policy instruments that support the low-carbon governance in China. The instruments are analysed in five aspects in relation to the key policies in low-carbon governance in China, including: energy conservation, developing new energy, reforestry, developing circular economy, and industry restructuring. Each aspect is discussed in three instrument groups which are (1) law and regulations, (2) industry standard and (3) finance and taxation. This research suggests that law enforcement for the new established laws should be further strengthened and stricter supervision systems should be in place to safeguard effective implementation of low carbon policies, measures and standards, especially for those energy condensed sectors. More rigorous industry standards regarding energy efficiency should be considered to help eliminate outdated equipments in industries and promote the introduction of more climate-friendly technologies. The industrial standards should be given strong legal support in accountability, in order to enforce their complete application once in operation. New policies and instruments need to be introduced in order to reduce carbon print by landfill. The backward law and industrial standards in China should be upgraded more regularly, therefore to support the low carbon development strategy.

The Learning Process and Technological Change in Wind Power: Evidence from China's CDM Wind Projects

The Clean Development Mechanism (CDM) is a project-based carbon trade mechanism that subsidizes the users of climate-friendly technologies and encourages technology transfer. The CDM has provided financial support for a large share of Chinese wind projects since 2002. Using pooled cross-sectional data of 486 registered CDM wind projects in China from 2002 to 2009, we examine the determinants of technological change in wind power from a learning perspective. We estimate the effects of different channels of learning — learning through R&D in wind turbine manufacturing, learning from previous experience of installation, and learning through the network interaction between project developer and turbine manufacturer — on technological change, measured as reductions in projected costs or as increased capacity factor across CDM wind projects. While we find that a manufacturer’s R&D and previous installation experience matter, interactions between wind turbine manufacturers and wind project developer lead to the largest cost reductions. Whereas existing literature suggests that wind power firms can learn from the experience of other wind farm developers, our results indicate that wind power firms mainly learn from their own experience and that knowledge spillovers mostly occur within certain partnerships between wind project developer and foreign turbine manufacturers in China’s wind power industry.

Strategic Investment in Climate Friendly Technologies: The Impact of Global Emissions Trading

Our point of departure is that a group of industrialized countries invest in research and development (R&D) of greenhouse gas (GHG) abatement technologies. R&D investments influence the future GHG abatement choices of both industrialized and developing countries. We distinguish between investments that reduce industrialized countries’ abatement costs and investments that reduce developing countries’ abatement costs. Unlike earlier contributions, we include global trading in emission permits. This changes the nature of the game. With global permit trading, industrialized countries should in many cases invest strategically in technologies that only reduce abatement costs at home. This comes in addition to investments abroad. Second, we show that R&D investments always decrease total emissions. Finally, we find that the developing region receiving investments always benefits.

Climate-friendly technologies in the mobile air-conditioning sector: a patent citation analysis

The development of climate-friendly technologies and its diffusion across countries is of key importance to slow climate change. This paper considers technologies in the mobile air-conditioning (MAC) sector which is a major contributor of fluorinated greenhouse gas emissions. Using patents as an indicator of innovations and patent citations as a proxy for knowledge flows, the inducement of new environmental and non-environmental technologies and knowledge diffusion within and across countries are analysed. The focus is on direct abatement of fluorinated greenhouse gases excluding energy efficiency improvements. We find that most environmental MAC patents originate from the US and Germany. Most knowledge flows take place within countries. Regarding cross-country flows most environmental knowledge diffuses from French and German patents, which is likely to be a result of regulatory activities in Europe and intensified research on environmentally benign MAC systems. Yet, this exchange of knowledge is not very intensive and stable so that the impact of EU regulations on US and Japanese patenting behaviour seems to be fairly weak.

What Drives the International Transfer of Climate Change Mitigation Technologies? Empirical Evidence from Patent Data

Technology transfer plays a key role in global efforts to reduce greenhouse gas emissions. In this paper, we characterize the factors that promote or hinder the international diffusion of climate-friendly technologies using detailed patent data from 96 countries for the period 1995–2007. The data provide strong evidence that lax Intellectual Property regimes have a strong and negative impact on the international diffusion of patented knowledge. Restrictions on international trade and foreign direct investment also hinder the diffusion of climate-friendly technologies. Surprisingly, local technological capabilities tend to discourage transfers. While broad indicators of technology capabilities are expected to facilitate transfers, this latter result stems from our technology-specific definition of local capabilities, which makes it possible to capture a substitution effect between local and foreign inventions.

Current Issues Surrounding the Trade and Climate Change Interface

The interface between trade and climate change is a complex issue though institutionally both the WTO and the UNFCCC are mutually supportive and leave sufficient policy space for one another in their respective operation. In this paper, three issues viz. carbon leakage and the border issue; the problem of unilateral trade measures; and finally, the issue of technology transfer and IPRs have been discussed. While the first two issues show how climate mitigation arises conflict within the WTO system, the third issue will discuss just the reverse, i.e. how the trade and technology transfer could arise conflict in international climate talks. The reason why trade intersects with climate change is due to the numerous implications that climate change may have in terms of its potential impacts and the intense regulatory and economic changes that are required to mitigate and adapt to these impacts. Hence, there is an intense need for a successful conclusion to the current negotiations on both climate change and trade. The paper concludes by saying that a successful conclusion of the WTO negotiations on trade liberalization will definitely help improve access to climate-friendly goods and technologies which are a pre-requisite to address climate change concerns. On the other hand, a successful round of the UNFCCC negotiations is likely to promote a supportive and open international economic system that would lead to sustainable economic growth and development thereby addressing the problems of climate change better.

How Should Support for Climate-Friendly Technologies Be Designed?

Stabilizing global greenhouse gas concentrations at levels to avoid significant climate risks will require massive "decarbonization" of all the major economies over the next few decades, in addition to the reduced emissions from other GHGs and carbon sequestration. Achieving the necessary scale of emissions reductions will require a multifaceted policy effort to support a broad array of technological and behavioral changes. Change on this scale will require sound, well-thought-out strategies. In this article, we outline some core principles, drawn from recent social science research, for guiding the design of clean technology policies, with a focus on energy. The market should be encouraged to make good choices: pricing carbon emissions and other environmental damage, removing distorting subsidies and barriers to competition, and supporting RD&D broadly. More specific policies are required to address particular market failures and barriers. For those technologies identified as being particularly desirable, some narrower RD&D policies are available.

Potential Threats to Patent Rights in Climate-Friendly Technologies

The transfer of climate-friendly technologies from developed countries to developing countries has been identified in international forums as a key factor in efforts to mitigate climate change. Commentators and negotiators have argued, however, that efforts to transfer climate-friendly technologies from developed countries to developing countries have fallen far short of what is needed. Although a host of barriers play a role in the pace of transfer of clean technologies, such as lack of financial resources, inadequate infrastructure, trade barriers, and lack of skilled workers to name a few, intellectual property rights (IPRs) have been accused of being a particularly significant barrier. Developing countries have made strong proposals to severely curtail IPRs on clean technologies, particularly patent rights. These proposals present potential threats to patent rights on clean technologies in developing countries and include expanded compulsory licensing, excluding clean technologies from patenting, and revoking existing patent rights on clean technologies in developing countries. The motivation for such proposals stem largely from theoretical considerations, when, in fact, recent studies provide evidence that patent rights are not a barrier to the transfer of clean technologies to the developing world and, to the contrary, are more likely facilitating the diffusion of clean technologies in developing countries.

Do governments have the right mix in their energy R&D portfolios?

Climate change is a major externality justifying government-sponsored R&D efforts into climate-friendly technologies. Current and near-term R&D is needed to develop new and improve existing technological options that will be needed in the long-term future to drastically reduce greenhouse gas emissions. The paper contrasts historical and current government R&D spending of the member countries of the International Energy Agency with a ‘need’-based analysis of technologies required to achieve long-term climate stabilization. The assessment of technology needs draws on the popular ‘stabilization wedge’ concept and is based on an analysis of a wide range of (22) scenarios of future technology deployment rates under a range of climate constraints that reflect important long-term uncertainties. We identify a significant mismatch to current energy technology R&D portfolios. The largest gap is between energy efficiency that is under-represented in current R&D portfolios and nuclear, which is over-represented, when compared with their respective importance for future climate mitigation efforts. Our discussion, therefore, focuses largely on these two contrasting mitigation options: energy efficiency versus nuclear.

International Technology Transfer for Climate Policy

While the developed world is starting to limit emissions of greenhouse gases, emissions from the developing world are increasing as a result of economic growth. Reducing these emissions while still enabling developing countries to grow requires the use of new technologies. In most cases, these technologies are first created in high-income countries. Thus, the challenge for climate policy is to encourage the transfer of these climate-friendly technologies to the developing world. This policy brief reviews the economic literature on environmental technology transfer. It then discusses the implications of this literature for climate policy, focusing on the Clean Development Mechanism (CDM) of the Kyoto Protocol. It concludes by asking whether the current structure of the CDM provides sufficient incentives for technology transfer. Are CDM projects providing real emissions reductions, or are developed countries simply receiving credit for reductions that developing countries could have achieved on their own? What lessons can we learn from recent experience that may guide the development of the CDM (or other similar policy tools) during the next round of international climate policy negotiations?

Carbon Taxes and Innovation without Commitment

Abstract Climate mitigation policy should be imposed over a long period, and spur innovation of new technologies in order to make stabilization of green house gas concentration economically feasible. The government may announce current and future policy packages that stimulate current R&D in climate-friendly technologies. However, once climate-friendly technologies have been developed, the government may have no incentive to implement the pre-announced future policies, that is, there may be a time inconsistency problem. We show that if the government can optimally subsidize R&D today, there is no time inconsistency problem. Thus, lack of commitment is not an argument for higher current R&D subsidies than the first-best subsidy. If the offered R&D subsidy is lower than the optimal subsidy, the current (sub-game perfect) carbon tax rate exceeds the first-best carbon tax rate.

Eyes on a Climate Prize: Rewarding Energy Innovation to Achieve Climate Stabilization

Stabilizing atmospheric concentrations of greenhouse gases at double their pre-industrial levels (or lower) will require emission reductions far in excess of what can be achieved with current or projected levels of technology at a politically acceptable cost. Substantial technological innovation is required if the nations of the world are to come anywhere close to proposed emission reduction targets. Neither traditional federal support for research and development of new technologies nor traditional command-and-control regulations are likely to spur sufficient innovation. Technology inducement prizes, on the other hand, have the potential to incentivize and accelerate the rate of technological innovation in the energy sector. This paper outlines the theory behind the use of inducement prizes to encourage and direct inventive efforts and technological innovation and identifies several comparative advantages inducement prizes have over traditional grants and subsidies for encouraging the invention and development of climate-friendly technologies. While no policy measure guarantees technological innovation, greater reliance on inducement prizes would increase the likelihood of developing and deploying needed technologies in time to alter the world’s climate future. Whatever their faults in other contexts, prizes are particularly well suited to the climate policy challenge.

What Drives the International Transfer of Climate Change Mitigation Technologies? Empirical Evidence from Patent Data

Using patent data from 66 countries for the period 1990–2003, we characterize the factors which promote or hinder the international diffusion of climate-friendly technologies on a global scale. Regression results show that technology-specific capabilities of the recipient countries are determinant factors. In contrast, the general level of education is less important. We also show that restrictions to international trade — e.g., high tariff rates — and lax intellectual property regimes negatively influence the international diffusion of patented knowledge. A counter-intuitive result is that barriers to foreign direct investments can promote transfers. We discuss different possible interpretations.

Climate Change, Technology Transfer and Intellectual Property Rights

Technology development and transfer has been identified as a key element in the Bali Action Plan. In the negotiations on a global climate treaty the developing nations have put forth ideas and plans to ensure that intellectual property rights (IPRs) do not become a barrier to transfer of climate friendly technology. In this discussion paper, this question of technology transfer, intellectual property rights is addressed in the context of climate change. Patent statistics shows the dominance of developed countries in specific technologies. The analysis on specific technologies indicates that IPRs is an important issue in development and transfer of technology and it is a barrier. Data indicates that although developing countries have made some progress, the dominance of developed countries in terms of patents, royalty and licensing income and expenditure on Research and Development remains as before. The historical experience is that stronger IPRs do not always result in more technology transfer and technology absorption. Hence the argument that developing countries should provide stronger protection of IPRs to encourage technology transfer has to be challenged. The technology transfer under UNFCCC and Kyoto Protocol has been minimal and insufficient to meet the needs of developing countries. The harmonization of IPRs through TRIPS has limited the options of countries to use compulsory licensing and competition policy. TRIPS has not facilitated technology transfer, particularly to Least Developed Countries (LDCs) and the North-South divide on this issue has resulted in a stalemate. Under these circumstances it is futile to expect that TRIPS alone will result in more transfer of climate-friendly technologies. Using Common But Differentiated Responsibility principle in technology development and transfer is desirable. Many proposals and suggestions have been made to stimulate technology development and transfer. Montreal Protocol is a successful example that is relevant in the context of climate change. The proposals including the proposals made by developing countries deserve a serious consideration and innovative solutions have to be found. Humanity does not have the luxury of finding solutions over a century to solve problems created by global climate change. Developing countries need both development and access to technologies that will facilitate the transition to less carbon intensive economy within the next two or three decades. So it is essential that IP issues do not become a barrier in this transition. The challenge of climate change calls for out of the box thinking to find solutions that can make a difference. The IPR issues in technology transfer need to be tackled by a combination of policy measures, incentives and bringing in changes at the global IP regime under TRIPS.

ITU-T initiatives on climate change

It is estimated that ICTs contribute around 2 percent of global greenhouse gas emissions. These percentages are likely to grow as ICTs become more widely available. At the same time, ICTs can be a major linchpin in efforts to combat climate change and serve as a potent cross-cutting tool to limit and ultimately reduce GHG emissions across economic and social sectors. This article looks at the potential role ICTs play at different stages, from contributing to global warming to monitoring it, to developing long-term solutions to mitigate its effects, both directly in the ICT sector and in other sectors such as energy, transport, buildings, and finally to helping adapt to its effects. The article addresses the efforts made by the ITU and its membership to develop new climate-friendly technologies.

The Value of Technological Advance in Decarbonizing the U.S. Economy

This paper examines the role of technology in managing the costs of a carbon constraint on the U.S. economy. Two portfolios of technology are examined. One reflects modest investments in climate-friendly technologies, the other more aggressive development. The analysis indicates that the development of a broad range of low-to zero-carbon emitting technologies can substantially reduce (but not eliminate) the economic cost of decarbonization. By enabling large-scale emissions reductions on the supply-side, costly reductions in demand for high-value energy services are avoided. In particular, the emergence of electricity as a low-carbon fuel provides a powerful lever for achieving reductions in other sectors of the economy at lower cost. While the analysis suggests that there is no free lunch, the bill, which may indeed be well worth paying, can be greatly reduced through an accelerated R&D program and successful diffusion of new technology throughout the economy.

The value of technological advance in decarbonizing the U.S. economy

This paper examines the role of technology in managing the costs of a carbon constraint on the U.S. economy. Two portfolios of technology are examined. One reflects modest investments in climate-friendly technologies, the other more aggressive development. The analysis indicates that the development of a broad range of low- to zero-carbon emitting technologies can substantially reduce (but not eliminate) the economic cost of decarbonization. By enabling large-scale emission reductions on the supply-side, costly reductions in demand are avoided. In particular, the emergence of electricity as a low-carbon fuel provides a powerful lever for achieving reductions in other sectors of the economy at lower cost. While the analysis suggests that there is no “free lunch,” the bill, which may indeed be well worth paying, can be greatly reduced through an accelerated R&D program and successful diffusion of new technology throughout the economy.

Clean, green flying machines

Aircraft emissions show little sign of abating as the development of climate-friendly technologies struggles to keep pace with booming passenger numbers.

The Clean Development Mechanism and the international diffusion of technologies: An empirical study

The Clean Development Mechanism (CDM) is expected to stimulate the North–South transfer of climate-friendly technologies. This paper provides an assessment of the technology transfers that take place through the CDM using a data set of 644 registered projects. It provides a detailed description of the transfers (frequency, type, by sector, by host country, etc.). It also includes an econometric analysis of their drivers. We show that transfer likeliness increases with the size of the projects. The transfer probability is 50% higher in projects implemented in a subsidiary of Annex 1 companies while the presence of an official credit buyer has a lower—albeit positive—impact. The analysis also yields interesting results on how technological capabilities of the host country influence technology diffusion in the CDM.