Kiel Working Papers, Kiel Institute for World Economics
No 1479:
Energy Saving Technology Diffusion via FDI and Trade: A CGE Model of China
Michael Hübler
Abstract: This paper introduces intra- and inter-sectoral technology
diffusion via FDI and imports into a recursive-dynamic CGE model for
climate policy analyses. It analyzes China’s accession to a Post Kyoto
emission regime that keeps global emissions from 2012 on constant. Due to
ongoing energy efficiency gains, partly stemming from international
technology diffusion, China will become a net seller of emission permits
and steadily reduce emissions, possibly below their 2004 level until 2030.
This will reduce the world CO2 price significantly. The impact of
supporting foreign firms and of reducing import tariffs on Chinese welfare
will not significantly change when China joins the Post Kyoto regime
Keywords: Technology diffusion, technology transfer, trade, FDI, climate change, China; (follow links to similar papers)
JEL-Codes: F18,; F21,; N75,; O33; (follow links to similar papers)
40 pages, January 2009
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