The effects of climate change technology spillovers on carbon emissions across European countries
Year: 2024
Type: article
Abstract: To unravel the challenges in the global diffusion of climate-friendly technologies, this investigation analyzes the diffusion of climate change-related technologies across countries. By using an unbalanced panel of selected European countries over the period 1990–2020, this investigation quantifies the carbon dioxide (CO2) emission effects of the diffusion of climate change-related technologies that are mediated by imports, geographical and technological proximity and free diffusion of technologies. In this study, the effects of domestic development of climate change-related technologies, population and affluence are also accounted for, and the emission effects are estimated using a fixed-effects panel model with instrumental variables. The instrumental variable for foreign technology spillovers is based on the technology support policies adopted in foreign countries. As expected, international spillovers of climate-friendly technologies are negatively linked to CO2 emissions, thus promoting emission reductions across the region. Importantly, emission reductions in Europe are more strongly influenced by international technology spillovers than by domestic innovation activities. Moreover, while all the analyzed technology diffusion channels appear relevant, the results are the most robust regarding import-mediated technology spillovers. Insights from this study support policy recommendations, especially in the trade policy context. • The channels of international climate technology spillovers are investigated. • An instrumental variable based on technology support policies is suggested. • International technology spillovers are shown to reduce national CO 2 emissions. • Technology spillovers are more impactful than national innovations. • Import-mediated technology spillovers present the most robust measure.
Authors: Jaana Rahko, Andrew Adewale Alola
Institutions: University of Vaasa, University of Inland Norway
Language: English
Subfield: Economics and Econometrics
Domain: Social Sciences
Open Access status: hybrid
Estimated APC paid: $3,850
OpenAlex ID: W4403561586