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{"id":55184,"date":"2021-06-14T11:29:13","date_gmt":"2021-06-14T10:29:13","guid":{"rendered":"https:\/\/www.lse.ac.uk\/granthaminstitute\/?post_type=publication&p=55184"},"modified":"2024-08-19T14:27:23","modified_gmt":"2024-08-19T13:27:23","slug":"induced-innovation-and-international-environmental-agreements-evidence-from-the-ozone-regime","status":"publish","type":"publication","link":"https:\/\/www.lse.ac.uk\/granthaminstitute\/publication\/induced-innovation-and-international-environmental-agreements-evidence-from-the-ozone-regime\/","title":{"rendered":"Induced innovation and international environmental agreements: evidence from the ozone regime"},"content":{"rendered":"\n

Global environmental problems are some of the most pressing issues that humanity is facing. There are few examples of success at resolving them; the fight to protect the ozone layer is one of them.<\/p>\n\n\n\n

This paper provides evidence that the Montreal Protocol’s restrictions on chlorofluorocarbons (CFCs) triggered a substantial increase in research and innovation on alternatives to ozone-depleting molecules.<\/p>\n\n\n\n

By showing that a low-ambition but binding agreement such as the Montreal Protocol did encourage the development of technological solutions, the paper suggests such agreements are potent tools that dynamically improve the benefit-cost equation of environmental protection and may therefore also be useful to dealing with current problems such as climate change.<\/p>\n\n\n\n

Key points for decision-makers<\/h2>\n\n\n\n
The Montreal Protocol was negotiated in 1987 by high-income countries to phase-out CFCs from industrial activities. CFCs had been identified as destroying ozone molecules in the stratosphere, reducing the extent to which humans were protected from solar radiation.<\/li>
Following the signing of the Protocol technological change unrolled rapidly, and within a decade the production and consumption of CFCs decreased by more than 80%.<\/li>
This paper offers the first quantitative study of whether the Montreal Protocol induced science and innovation on CFC substitutes.<\/li>
The author compares CFC substitute molecules with molecules that have similar uses but are unrelated to ozone depletion. After the Agreement was signed, patents on CFC substitutes increased by 400% and scientific articles by 500% compared with the control group.<\/li>
The author’s primary hypothesis is that the Montreal Protocol provided a clear signal and powerful incentives for firms and scientists to increase work on CFC substitutes, which led to an increase in patents and scientific articles mentioning these molecules.<\/li>
The presented empirical evidence that the Montreal Protocol led to the development of CFC substitutes goes against the often-heard narrative that alternative technologies were readily available before the treaty. In fact, the author’s research tells a story where almost all of the science and innovation on CFC substitutes was triggered by the post-Montreal regime.<\/li>
The paper shows that the ozone layer’s success story is better summarised as a series of agreements where innovation plays a critical role to lower abatement costs, enabling ambitions to ratchet up.<\/li>
The implication is that agreements are potent tools that dynamically improve the benefit-cost equation of environmental protection and may therefore also be useful to deal with current problems such as climate change.<\/li><\/ul>\n\n","protected":false},"excerpt":{"rendered":"\n
This paper provides evidence that the Montreal Protocol’s restrictions on CFCs triggered a substantial increase in research and innovation on alternatives to ozone-depleting molecules and suggests such international environmental agreements can dynamically improve the benefit-cost equation of environmental protection and may therefore also be useful to dealing with current problems such as climate change.<\/p>\n\n","protected":false},"author":23,"featured_media":55185,"template":"","tags":[2094,185,2095,2093],"publication-type":[435],"topic_area":[4694],"class_list":["post-55184","publication","type-publication","status-publish","has-post-thumbnail","hentry","tag-cfcs","tag-international-agreement","tag-montreal-protocol","tag-ozone-layer","publication-type-working-papers","topic_area-policy-evaluation"],"acf":{"exclude_from_sync":{"ref_value":"field_560538b0e7350","value":"0","type":false,"post_type":""},"downloads":{"ref_value":"field_52f16cc1a80f2","value":["https:\/\/www.lse.ac.uk\/granthaminstitute\/wp-content\/uploads\/2021\/06\/working-paper-363-Dugoua.pdf"],"type":"download","post_type":""},"rss_newsletter":{"ref_value":"field_54f5c2c1544d8","value":"","type":false,"post_type":""},"profile_link":{"ref_value":"field_52f164b5189e9","value":["eugenie-dugoua"],"type":"relationship","post_type":"profile"},"spotlight":{"ref_value":"field_52f80896506d3","value":"","type":false,"post_type":""}},"yoast_head":"\nInduced innovation and international environmental agreements: evidence from the ozone regime - 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