ABSTRACT
A key element of climate change mitigation and adaptation is the transfer of more effective and efficient low-carbon technologies between developed and developing countries. Although several policy mechanisms for technology transfer are in place, most observers agree that these have not been very effective in accelerating the rate of diffusion of energy-efficient and renewable-based technologies. There is a need for market-oriented approaches in order to diffuse efficient technologies more rapidly and to reduce high transaction costs, which are a major factor explaining the low effectiveness of existing mechanisms (Michaelowa and Jotzo, 2005; Jung, 2006; Hofman et al., 2008; Lovett et al., 2009; Byigero et al., 2010; Timilsina et al., 2010).
