The impact of network topological structures on systematic technology adoption and carbon emission reduction

Abstract

AbstractThis paper investigates how the topological structure of the technological spillover network among agents affects the adoption of a new clean technology and the reduction of system’s carbon emissions. Through building a systematic technology adoption model with technological spillover effect among agents from the network perspective, this paper first illustrates how the new technology diffuses from the earlier adopters to the later adopters under different network topological structures. Further, this paper examines how the carbon emission constraints imposed on pilot agents affect the carbon emissions of other agents and the entire system under different network topological structures. Simulation results of our study suggest that, (1) different topological structures of the technological spillover network have great influence on the adoption and diffusion of a new advanced technology; (2) imposing carbon emission constraints on pilot agents can reduce carbon emissions of other agents and thereby the entire system. However, the effectiveness of the carbon emission constraints is also largely determined by the network topological structures. Our study implies that the empirical research of the network topological structure among the participating entities is a pre-requisite to evaluate the real effectiveness of a carbon emission reduction policy from the system perspective.