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date: 22 July 2019

Abstract and Keywords

This chapter reviews the literature on climate-friendly technological change, with a focus on lessons relevant to developing countries. I begin by discussing the sources of environmental innovation. Given that most innovation is concentrated in a few rich countries, this leads to a discussion of the remaining role for lower-income countries, followed by a discussion of technology transfer. Because of the importance of market failures, I then discuss the role of both technology policy and environmental policy for promoting environmentally friendly technological change. The review concludes with a discussion of both the implications for developing countries and suggestions for future research.

Keywords: climate, diffusion, environmental policy, innovation, R&D, technology policy, technology transfer

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