Induced innovation and international environmental agreements: evidence from the Ozone Regime

Dugoua, Eugenie ORCID: 0000-0002-4176-8740 (2023) Induced innovation and international environmental agreements: evidence from the Ozone Regime. Review of Economics and Statistics. ISSN 0034-6535

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Abstract

This paper revisits one of the rare success stories in global environmental cooperation: the Montreal Protocol and the phase-out of ozone-depleting substances. I show that the protocol increased science and innovation on alternatives to ozone-depleting substances, and argue that agreements can indeed be useful to solving global public goods problems. This contrasts with game-theoretical predictions that agreements occur only when costs to the players are low, and with the often-heard narrative that substitutes were readily available. I reconcile theory and empirics by discussing the role of induced innovation in models of environmental agreements.

Item Type:	Article
Additional Information:	© 2023 MIT Press
Divisions:	Geography & Environment
Subjects:	H Social Sciences > HC Economic History and Conditions H Social Sciences > HD Industries. Land use. Labor H Social Sciences > HB Economic Theory
JEL classification:	O - Economic Development, Technological Change, and Growth > O3 - Technological Change; Research and Development > O30 - General Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics > Q5 - Environmental Economics > Q55 - Technological Innovation
Date Deposited:	16 Oct 2023 14:30
Last Modified:	01 Oct 2024 03:53
URI:	http://eprints.lse.ac.uk/id/eprint/120482

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