China plays, and will likely continue to play, an indispensable role in research, development, and demonstration (RD&D) and manufacturing of low-carbon technologies that are necessary to address climate change. For example, China’s scale-up capabilities that are underpinned by manufacturing...

This paper studies the cost effectiveness of climate policy if there are technology externalities. For this purpose, we develop a forward-looking CGE model that captures empirical links between CO2 emissions associated with energy use, directed technical change and the economy. We find the...