02273cas a2200253 a 4500 AALejournalIMF022209 230101c9999 xx r poo 0 0eng d 5.00 USD 9781616354855 1018-5941 BD-DhAAL BD-DhAAL Wiegand, Johannes. Global Climate Change Mitigation, Fossil-Fuel Driven Development, and the Role of Financial and Technology Transfers : A Simple Framework / Johannes Wiegand. Washington, D.C. : International Monetary Fund, 2021. 1 online resource (20 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students Climate financing and compensation have emerged as key themes in the international climate mitigation debate. According to one argument in support of compensation, advanced economies (AEs) have used up much of the atmosphere's absorptive capacity, thus causing global warming and blocking a similar, fossil-fuel driven development path for emerging markets and developing economies (EMDEs). This paper develops a simple model of a sequential, fossil-fuel driven development process to discuss these issues systematically. The results suggest: (i) AEs have typically a stronger interest in climate change mitigation than EMDEs, (ii) from an equity perspective, compensation is called for only if EMDEs are relatively small; (iii) there can also be an efficiency case for compensation, however, with AEs buying EMDEs out of some of their GHG emissions; (iv) ultimately, a superior option-for both the world's climate and growth prospects-is the development of clean energy technologies by AEs and their transfer to EMDEs. The latter requires strong mitigation efforts by AEs even if EMDEs fail to play along initially. Mode of access: Internet Externalities imf IMF Working Papers; Working Paper ; No. 2021/280 Full text available on IMF http://elibrary.imf.org/view/journals/001/2021/280/001.2021.issue-280-en.xml IMF e-Library