A0848
Title: Technology diffusion and CO2 emission reduction
Authors: Willi Semmler - New School for Social Research (United States)
Pu Chen - Curtin University (Australia) [presenting]
Abstract: The aim is to investigate the role of technology in the global green transition through both theoretical and empirical lenses. A dynamic general equilibrium (DGE) model is developed, based on the regional framework of a prior study, to examine how technological progress and international spillovers contribute to reducing CO emissions. In the model, technology influences both productivity and emissions intensity, with regional heterogeneity in innovation capacity and spillover absorption affecting the dynamics of transition. The analysis highlights the potential for cooperative technology strategies to accelerate decarbonization and enhance global welfare. Guided by the theoretical framework, the impact of technology is empirically assessed on emissions using a Global Vector Autoregression (GVAR) model. Employing panel data on CO emissions, technological indicators, and macroeconomic variables across a wide set of countries, the international transmission of technology shocks and their effects on emission trajectories are quantified. The empirical findings provide robust support for the hypothesis that cross-border technology diffusion significantly contributes to emission reductions. These results underscore the importance of international cooperation and investment in clean technologies as central components of effective global climate policy
