Growing awareness and increasing concern about the accumulation of greenhouse gases has led to international negotiation on the climate change. An important issue of this negotiation is the allocation of resources, including fund and technology transfer, to prevent climate change in the most efficient and equitable manner.
Focusing on the technology transfer, we model the climate change negotiation as a three stage game between developed and developing nations, since these groups of nations are major parties in the negotiation.
The major finding of this thesis includes that, if there is to be trading of abatement quotas, one of the key factors that determine each nation's value of transferring technology is to do with the initial allocation of abatement quotas. The more a nation's abatement quota is, the higher is her value of transferring technology. In addition to the main result, we also analyze the technology transfer under two different transfer options, free and commercial.
