A Full Participation Agreement on Global Emission Reduction through Strategic Investments in R&D. (28th November 2011)

• Record Type: Journal Article
• Authors: Kratzsch, Uwe; Sieg, Gernot; Stegemann, Ulrike
• Other Names: Folmer Henk Academic Editor.
• Is Part Of: Economics research international. Volume 2011(2011)
• Publication Date: 2011-11-28
• Subjects: Economics -- Periodicals; Economics; Periodicals; Electronic journals; 330.05
• DOI: 10.1155/2011/318523
• Languages: English
• ISSNs: 2090-2840

Abstract

Abstract : If an emission reduction agreement with participation of all players is not enforceable because politicians are too myopic or costs of reducing emissions are too high, strategic investments in research and development (R&D) of green technology, for example, sustainable drivetrains, can pave the way for a future treaty. Although no player will rationally reduce emissions on its own, investments in R&D by at least one player can change the strategic situation of negotiations to control emissions: emission abatement costs will decrease so that a treaty with full participation can be achieved in future periods through time consistent sustainable policies.