Credit: ©iStockphoto.com/Tobias Helbig

Despite progress at December 2010's UN negotiations in Cancun, nations have struggled to agree a globally binding treaty on emissions reductions that will extend beyond 2012, when the Kyoto Protocol expires. Now, academics herald international cooperation on climate-friendly technologies, rather than on emissions cuts, as a more effective option.

Rolf Golombek at the Frisch Centre, Norway, and Michael Hoel at the University of Oslo, Norway, used a four-stage game to analyse various scenarios under which environmental research and development subsidies are determined at the national level, or through international agreement1. They found that even in the absence of global cooperation, it would be optimal for governments to subsidize their own R&D due to the 'spill-over' effect, or global shared benefits, including learning, reduced abatement costs and, in turn, lower emissions.

Although it is challenging to regulate actual R&D investments supported by government subsidies, the authors argue it may still be easier to obtain broad participation in a technology-based agreement than in one based on emissions.