October 24, 2010

'The Voracity Effect' and Climate Change: The Impact of Clean Technologies

by Hassan Benchekroun and Amrita Ray Chaudhuri

- In the absence of a successful international cooperative agreement over the control of emissions there is a growing interest in the role that clean technologies may play to alleviate the climate change problem. Within a non-cooperative transboundary pollution game, we investigate, analytically and within a numerical example based on empirical evidence, the impact of the adoption of a cleaner technology (i.e., a decrease in the emission to output ratio). We show that countries may respond by increasing their emissions resulting in an increase in the stock of pollution that may be detrimental to welfare.

Benchekroun, H. and A.R. Chaudhuri (2010). "'The Voracity Effect' and Climate Change: The Impact of Clean Technologies." CentER Discussion Paper, No. 2010-97, Sept 2010.