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“The Voracity Effect” and Climate Change: The Impact of Clean Technologies

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  • Benchekroun, Hassan
  • Chaudhuri, Amrita Ray
Abstract
We show that a technological breakthrough that reduces CO2 emissions per output can exacerbate the climate change problem: countries may respond by raising their emissions resulting in an increase of the stock of pollution that may reduce welfare. Using parameter values based on empirical evidence we obtain that any 'new technology' that reduces the emissions of CO2 per dollar of GDP by less than 76% from their current level is welfare reducing. Developing clean technologies as well as transferring “cleaner” technologies to developing countries make a global post-Kyoto agreement over the control of emissions all the more urgent.

Suggested Citation

  • Benchekroun, Hassan & Chaudhuri, Amrita Ray, 2011. "“The Voracity Effect” and Climate Change: The Impact of Clean Technologies," Sustainable Development Papers 99642, Fondazione Eni Enrico Mattei (FEEM).
    • Handle: RePEc:ags:feemdp:99642
    DOI: 10.22004/ag.econ.99642
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    Cited by:

    1. Hassan Benchekroun & Amrita Ray Chaudhuri, 2015. "Cleaner Technologies and the Stability of International Environmental Agreements," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 17(6), pages 887-915, December.
    2. Hassan Benchekroun & Ngo Van Long, 2012. "Collaborative Environmental Management: A Review Of The Literature," International Game Theory Review (IGTR), World Scientific Publishing Co. Pte. Ltd., vol. 14(04), pages 1-22.

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    More about this item

    Keywords

    Environmental Economics and Policy;

    JEL classification:

    • Q20 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - General
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy
    • C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games

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