Endogenous green technology innovation and diffusion with strategic international spillovers
Zhuo Feng
TL;DR
This paper explores how countries can work together to speed up green technology innovation and reduce pollution through coordinated policies and shared knowledge.
Contribution
The paper introduces a new theoretical framework combining game theory, growth models, and network analysis to study international green technology spillovers.
Findings
Non-cooperative strategies lead to underinvestment in green R&D and delayed environmental improvements.
Cooperative policies, like carbon pricing and R&D subsidies, significantly enhance global green transitions.
The structure of knowledge spillover networks strongly influences the effectiveness of green innovation strategies.
Abstract
Escalating environmental challenges necessitate accelerated green technology innovation and diffusion. This paper introduces a novel theoretical framework synthesizing differential game theory, endogenous growth with directed technical change, and network analysis to investigate the interplay between strategic national R&D investments, the endogenous direction of innovation, and structured international knowledge spillovers. The model contrasts non-cooperative and cooperative equilibria, revealing that non-cooperation yields suboptimal global outcomes: underinvestment in green R&D, delayed transitions, and a failure to curb long-term pollution, driven by free-riding on environmental benefits and knowledge spillovers. The spillover network’s architecture critically mediates these dynamics. Conversely, cooperative solutions markedly improve environmental and technological trajectories.…
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Taxonomy
TopicsEnergy, Environment, Economic Growth · Innovation Diffusion and Forecasting · Climate Change Policy and Economics