Advancing International Green Technology Cooperation: A Comprehensive Framework Approach

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Abstract

Introduction

The imperative to address the escalating climate crisis has propelled a global effort to achieve a low-carbon economy through international cooperation (Stern, 2007). Cooperation, ranging from individual to national and regional levels, generates positive network externalities, leading to synergetic effects beyond cost savings (Meijers, 2005). It underscores the value of transferring activities and resources among various actors, fostering heightened interdependencies (Capineri and Kamann, 1998). At its core is the transfer of green technologies, addressing disparities from resource-abundant to resource-scarce countries, aiming for holistic equilibrium. This necessitates a synergistic fusion of national initiatives and international cooperation (Rath and Herbert-Copley, 1993). The goal is a balanced allocation of resources, technology, financial support, governance, and other aspects. Given the crucial role of international cooperation, assessing its impact becomes essential. The global movement toward sustainable development and environmental stewardship, championed globally, necessitates measuring and comparing countries' efforts, as reflected in prominent intercountry comparison(Freudenberg, 2003).

However, defining green technology poses challenges as the terms “green technology” and “climate technology” have long been used interchangeably without universally agreed-upon standard definitions. Rath and Herbert-Copley (1993) propose a broad definition: “technologies required to modify or improve specific products and processes that cause environmental damage.” This ambiguity stems from diverse disciplinary uses, making a universally accepted definition challenging.

Previous research has long focused on developing indices to assess green technology aspects, providing a tool for nationallevel environmental quality measurement. Indices such as the Sovereign Environment, Social, Governance (ESG)¹ Index by the World Bank, the Green Growth Index (GGI)¹ by the Global Green Growth Institute, and the Green Innovation measurement by the Inter-American Development Bank (IDB) (Grazzi et al., 2019) contribute to this effort.

Beyond global institutions, universities and research organizations produce indices like Yale University’s Environmental Performance Index (EPI). The Climate Change Performance Index (CCPI) by Germanwatch and individual scholars’ indices, such as the Climate Change Cooperation Index (CCCI) (Bernauer and Böhmelt, 2013), sustainable energy transition readiness (Neofytou et al., 2020), and the Environmental Sustainable Index (ESI) (Hafezi Birgani and Moghaddam, 2018), contribute to understanding green technology challenges. However, existing criteria lack insights into comprehensive approaches that encompass technological and policy dimensions for holistic global green growth analysis (Herman and Shenk, 2021).

However, these studies lack a comprehensive approach, scope, and coverage, failing to capture the dynamic nature of green technology. Existing indices, such as the ESG, GGI, and those provided by the IDB, often do not integrate technological and policy dimensions comprehensively. Many indices, including the EPI, CCPI, CCCI, and ESI, focus on specific purposes without providing a holistic analysis that considers the multifaceted nature of green growth, encompassing economic, social, environmental, and technological factors. They often emphasize one aspect, such as environmental impacts or technical advancements, without addressing how these elements interact to drive green growth by transferring technology through international cooperation.

Additionally, these indices tend to concentrate on specific sectors (e.g., energy, emissions) without considering the broader impacts necessary for international cooperation. The rapid pace of technological change in green technology further complicates this challenge, as many indices become outdated quickly and fail to keep up with the latest developments and innovations. This lack of flexibility hinders their ability to adapt to new technological trends and policy shifts, which are crucial for accurate and up-to-date assessments.

To fill this gap, this study aims to provide insights into international cooperation within sustainable development by developing a conceptual framework for understanding green technology transfer at the national level. It integrates insights from various disciplines such as economics, technology, environment, and politics, which are essential for a wellrounded understanding of green technology cooperation. Additionally, it develops a comprehensive framework that includes both technological advancements and policy measures, considering their interplay and combined impact on green technology. Therefore, in introducing the concept of the Green Technology Cooperation Index (GTCI), this study will clarify the term “green technology” and demonstrate its significance in promoting international cooperation for green technology transfer. Ultimately, this study proposes a conceptual framework of green technology cooperation, detailing the components of the GTCI.

Understanding Public Perceptions of Green Technology Cooperation

The concept of green technology, also known as "climate technology", or “green climate technology,” is central to discussions on sustainability, environmental protection, and technological innovation. It is essential to clarify the inherent complexity and variability in defining green technology cooperation, considering the diverse perspectives and contexts that shape this multifaceted concept.

Historically, "green technology" was more common, but in recent years, "climate technology" has gained wider acceptance, especially with the increased prominence of climate change. This shift is evident in the technology mechanism framework developed through various discussions and dialogues in the UNFCCC. Green technology and climate technology are interconnected and play crucial roles in shaping a sustainable future. Green technology, which originates within the context of green growth, encompasses abstract ideas such as the economy and society, highlighting a broader concept of sustainable development (Sarkodie et al., 2023). In contrast, climate technology focuses on addressing challenges related to climate change or climate crisis, aiming to solve these challenges through technologies such as greenhouse gas reduction, carbon neutrality, climate control, climate modeling, climate monitoring, and marine ecosystem restoration (Barrett, 2009). The challenges include reducing emissions from industrial processes, transportation, and energy production, as well as promoting individual actions. In addition, balancing carbon emissions with carbon removal through initiatives such as reforestation, carbon capture and storage, and transitioning to renewable energy sources, as mentioned in Table 1 for example.

Table 1.

Key Challenges (or needs) categorized by Green Technology

In this research, the term “green technology” is used as a comprehensive concept that includes climate technology. It emphasizes technological innovation as a foundation for sustainable economic development, coupled with technology policy for environmental protection (de Coninck and Sagar, 2015). According to the legislation and policy of the Korean government, green technology encompasses various areas, such as addressing climate change, enhancing energy efficiency, promoting clean production, developing new and renewable energy sources, and facilitating resource recycling (Ministry of Environment, 2021). The concept places significant emphasis on achieving dual objectives: environmental sustainability and economic viability. The primary goal is the efficient use of energy and resources while simultaneously minimizing greenhouse gas emissions and pollutants. Moreover, it ensures the conservation of resources for the next generation by avoiding excessive consumption (Nordhaus, 2021). The overarching objective is to achieve carbon neutrality across all social and economic activities. This comprehensive approach aligns with the Korean government's commitment to fostering a green technology landscape that not only addresses immediate environmental concerns but also lays the foundation for a sustainable and responsible future.

An illustrative example of understanding green technology involves exploring the demand for cooperation in this field, as surveyed during meetings between the National Institution of Green Technology and overseas partner organizations. The key challenges outlined in Table 1 represent the needs and demands of certain countries as a technology transferee falling under the umbrella of green technology. These challenges span various environmental aspects, ranging from industrial to individual levels, with a particular focus on addressing challenges associated with climate change. This collaborative approach seeks to reduce environmental pollution and resource waste, contributing to a sustainable economy (Aithal and Aithal, 2016). Additionally, it serves as a facet of climate technology, addressing climate change mitigation and adaptation concerns, including considerations related to carbon productivity (Li, 2019).

In addressing green technology, green technology cooperation is defined by the principles outlined by Keohane (Keohane, 1984). According to Keohane’s concept of intergovernmental cooperation, cooperation occurs when a government’s policies are perceived by its counterparts as contributing to the achievement of their own objectives through policy coordination (Baettig et al., 2008; Keohane, 1984). This means that when a state actively participates in sustainability and climate protection through international agreements, it engages in cooperative behavior (Bättig and Bernauer, 2009). This behavior aids in the realization of shared global missions and objectives that unite all participating countries (Baettig et al., 2008). As such, international cooperation in green technology plays a critical role in facilitating the knowledge exchange to enable technology transfer for sustainable development, particularly during the early stage of technology adoption in developing countries (Technology Mechanism, UNFCCC). These cooperative activities take on various forms throughout the ongoing process, including trade, foreign direct investment, partnerships through joint ventures with local entities, or technology licensing agreements (Hall and Helmers, 2010). In this context, cooperation refers to collaboration between countries, considering environmental externalities, with a focus on the economic concept of achieving both economic benefit and environmental protection, commonly referred to as sustainable development (Portney, 2015).

An important characteristic of the alignment of green technology and cooperation is that the goals of sustainability and tackling the climate crisis inherent in climate technology are ideally fulfilled by balancing and harmonizing the flow of technology globally, as framed well in the technology and financial mechanisms under the UNFCCC. It emphasizes the importance of achieving sustainable development while simultaneously fostering economic growth. Sustainable development is characterized by organizing technological, scientific, environmental, economic, and social resources in a manner that allows the resulting diverse system to be upheld in a condition of temporal and spatial balance (Devuyst et al., 2001). The definition extends to preserving the wellbeing of future generations and individuals in different locations. Despite considerable efforts to clarify its meaning, sustainable development remains a multifaceted and imprecise term, encompassing the preservation of the environment, the advancement of economic growth, and promoting equity (Portney, 2015).

The international scheme of green technology cooperation shows its orientation, mainstream areas, and outcomes. The main activities in the cooperation process include capacity building, technology knowledge transfer, financial support or direct investment, collaborative projects, and related activities, typically spanning multiple years. A typical technology transfer action is to facilitate technology adoption in the requested sectors, encompassing various aspects, including sharing the historical development of technology. It needs to consider the economic and social conditions of the partner country, drawing insights from its experience. Additionally, knowledge transfer involves sharing strategies and master plans to promote the adoption and advancement of technology with professional technicians' assistance. Best practices are also exchanged to achieve shared climate change reduction goals, aligning with UNFCCC's objectives. These efforts create spillover effects, spreading green technology knowledge as best practices. They also encourage other countries to participate, stimulating green growth, job creation, and economic development.

In this context, green technology encompasses a diverse array of technologies, extending beyond those solely aimed at mitigating climate change. It includes technologies focused on reducing energy demand (Guo et al., 2020), preserving various aspects of the environment such as agriculture, ocean, and ecosystem, effective waste management. While there are several technologies to consider, this study specifically emphasizes green technology cooperation rather than the technologies themselves. Moreover, the challenges addressed by these technologies are not ones that a single country can solve independently; instead, they necessitate collaborative efforts on a global scale. In the realm of green technology cooperation, the focus is not on individual technologies addressing singular challenges, but rather on the integration of diverse technologies working together to solve complex challenges.

Conceptualizing the GTCI Framework

Conceptualizing the GTCI framework requires a thorough examination of the key components and processes inherent in Green Technology Cooperation (Nardo et al., 2005). The framework of GTCI should not only encompass the factors that are influenced by green technology cooperation but also encapsulate the broader characteristics and concepts associated with this form of collaboration. This comprehensive approach ensures that the index is comprehensive and reflective of the multifaceted nature of green technology cooperation, providing a more nuanced and accurate evaluation of its effectiveness and impact.

1. Key components of GTCI

In the formulation of the Green Technology Cooperation Index (GTCI) framework, this study underscores the importance of incorporating a forward-looking perspective to address the needs of the next generation and contribute to a sustainable future (Nordhaus, 2011). The formulation of GTCI is initiated by six questions in this study to ensure its alignment with contemporary challenges and advancements. With these questions put into 5W1H questions, the questions will be given in Figure 1.

Figure 1.

Initializing questions linking to 5W1H Questions.

In Table 2, the GTCI framework, anchored in key questions to connect key elements derived from these questions, culminating in four essential pillars, main activities, and steps in the cooperation process. A crucial aspect of green technology transfer involves assessing the readiness of countries for cooperation. Despite the global expansion of green technology cooperation, there remains a need to comprehensively evaluate and understand effective technology transfer mechanisms. A solid foundation for cooperation between countries is vital for the success of these activities. In addition, countries engaging in green technology cooperation must exhibit readiness and willingness to adopt these technologies, which is a critical factor for cooperative efforts. Identifying this willingness is complex and involves considerations that vary case by case.

Table 2.

Linking Key Questions to the Key Elements in the Development of GTCI

These questions within the GTCI framework serve as guidelines for national-level green technology policy services, offering criteria for assessing challenges during the cooperation process. Core indicators act as critical benchmarks, reflecting mutual agreements between countries in research, policy dialogue, and technology support. They evaluate the extent to which practical projects and policy discussions in green technology cooperation contribute to global sustainable development.

In the technology transfer mechanism shown in Figure 2, the analysis of agents and factors influencing technology transfer within the context of green technology cooperation involves critical elements, as suggested by the International Energy Agency (IEA) (IEA, 2011). These elements encompass pillars associated with market dynamics, investments, policy interventions, the policy environment, and economic and social conditions. The framework of green technology cooperation places emphasis on key elements that involve the supply side in the economic market.

Figure 2.

Technology Transfer Mechanism of Green Technology Cooperation within a country.

The technology transfer mechanism comprises four fundamental pillars: green technology, government policy, macroeconomic and social conditions, and creating a sustainable environment for cooperation. The interactions among these pillars play a crucial role in facilitating green technology cooperation, with discernible impacts on supplyside agents in the economic market.

On the supply side, entities such as firms, academia, and research institutes are influenced by green technology transfer, engaging in capacity building. This involves consulting on pertinent policies, transferring technology knowledge, and providing direct investment or financial support. These actions occur within the framework of both the policy environment and macroeconomic and social conditions. Government entities, in turn, respond to these interactions by implementing policy interventions shaped by the insights gained through technology transfer consultations.

On the demand side of the economic market, consumers and exporters within the green technology sector are pivotal drivers for the adoption and utilization of green technology (International Trade Centre, 2019). To achieve this, there is a growing emphasis on cooperation between the private and public sectors. The dynamic interplay between these supply and demand elements forms the foundation for effective and sustainable green technology cooperation, emphasizing a comprehensive approach that involves diverse stakeholders across the economic landscape.

In addition, macroeconomic and social conditions within or outside of a country, coupled with government interventions based on the policy environment, are essential aspects of the green technology cooperation framework. These factors significantly shape the development, transfer, and adoption of environmentally sustainable technology. The process involves a dynamic interplay between various stakeholders and conditions, contributing to the successful implementation and integration of green technology.

It is crucial to note that the technology transfer mechanism of this cooperation is typically confined within a country, placing green technology transfer activities as a technology push factor (Grubb, 2004; Stern, 2007). This flow progresses into the policy environment, encompassing policy interventions under the appropriate macroeconomic and social conditions, stimulating investment in the country to foster the market. Broadening the perspective to the international level involves cooperation between various sectors between two countries in the process of green technology transfer. In this expanded context, one country serves as the provider of green technology, while the other country adopts and incorporates the technology. This cross-border cooperation dimension reflects the global nature of technology transfer in the context of environmental sustainability and green technology innovation.

2. Key process to formulate GTCI

To initiate the technology transfer mechanism illustrated in Figure 2 and complemented by Table 1 and Figure 1, this study introduces the GTCI as a novel metric designed to assess the efficacy of green technology transfer in the cooperation process. The research recognizes persistent knowledge gaps in comprehending and evaluating the mechanisms that drive effective technology transfer (Sibilla and Kurul, 2020). Research, Development, and Demonstration (RD&D) strategies as technical cooperation activities for achieving sustainable global development are a push factor for technology innovation (Stern, 2007).

In Figure 3, the cooperation process through the innovation chain toward the market pull stages by commercialization to diffuse the technology to the market (Nascimento and Zawislak, 2023). Successful RD&D relies on a pilot program or project that mitigates the risks associated with non-alignment with varying local conditions to commercialization (Dato et al., 2023). Understanding these mechanisms and their implications forms the foundation for establishing the technology factors underpinning the framework of this study, distinguishing it from other existing research and indices.

Figure 3.

Cooperation Process through the Innovation Chain for Initializing the Technical Transfer Mechanism.

Cooperative technology demonstrations with countries, especially to fulfill international agreements such as the Paris Agreement, are gaining attention. This process plays a crucial role through technical cooperation activities in partner countries, focusing on local applicability, technology transfer, knowledge exchange, local market activation, and sustainable development. Cooperative approaches in green technology cooperation are effective means of aligning with the Paris Agreement, addressing climate change, and fostering global technological innovation.

Therefore, the development, methodology, and the factors considered in GTCI encompass environmental preparedness, economic factors, technological readiness, government policies, and prioritization of international cooperation. The comprehensive nature of GTCI positions it as a valuable tool for assessing and advancing green technology transfer within the broader context of sustainable global development.

Developing the Conceptual Framework of GTCI

1. Analyzing the existing indices

In preparation for formulating the conceptual framework for the GTCI, a comprehensive analysis of existing indices is imperative. This analysis aims to discern both distinctive and shared features within each index, providing a nuanced understanding of green technology cooperation. The selected indices for review span diverse perspectives, including ESG, Green Growth Index (GGI), and Green Innovation (GI), offering insights across economic, social, and environmental dimensions. Additionally, environmental-centric indices, namely the Environmental Performance Index (EPI), Climate Chante Cooperation Index (CCCI), Climate Change Performance Index (CCPI), Global Climate Risk Index (GCRI), and Environmental Sustainability Index (ESI), contribute valuable insights. Table 2 will serve as a reference to distill essential components, guiding the formulation of the GTCI in this study.

These indices compare selected countries based on their components to better understand which countries perform better according to the purpose of the index in a sustainable way. The analyzed indices exhibit varying scopes within their frameworks, offering a diverse array of factors crucial for a comprehensive analysis. Together, they provide nuanced insights into the components that should be integral to the GTCI framework, emphasizing sustainability. The key factors identified fall into three primary categories: environment, economy/society, and government policy.

Within the environment category, composite factors include the reduction of carbon emissions, conservation of ecosystems, and the overarching goal of enhancing sustainability. In the economy/society category, factors relate to the economic benefits derived from improving environmental quality, cost efficiency, market opportunities, economic growth, financial support, and considerations for health and social inclusion. The government policy category encompasses factors such as the regulatory framework, incentives, environmental and climate policies, and compliance with international agreements, all contributing to the promotion of technology transfer (World Bank Group, 2017).

Through the analysis of these existing indices, this study explores the interconnectedness of several factors that influence green technology cooperation. These factors encompass economic considerations, environmental preparedness, technological readiness, and government policies. Specifically, the component of environmental standpoint focuses on evaluating the environmental impact of green technologies, focusing on their contribution to reducing carbon emissions and enhancing overall sustainability, with a focus on reducing greenhouse gas emission and conserving ecosystem. The economic/social component evaluates the financial aspects of green technology cooperation, including economic benefits, cost efficiency, and growth potential, as well as the social aspects of international cooperation. The component centered on government policy evaluates the regulatory and policy framework supporting the development and transfer of green technology. It examines various measures aimed at incentivizing, funding, and promoting climate technologies and environmentally friendly practices. However, these indices fall short in providing guidance on technology transfer and adoption within the cooperation framework. Additionally, they do not cover the intricacies of the technology transfer process to address knowledge imbalances or consider the local technology transfer infrastructure necessary for effective knowledge transfer during the technical cooperation activities stage, emphasizing the importance of technology push.

Table 3.

A comparative analysis of the features of the existing indices’ key factors

2. GTCI Components

Based on the key elements in the development of the Global Technology Cooperation Index (GTCI) outlined in Table 2 and the analysis of existing indices in the previous section, this structured approach provides a solid foundation for developing the GTCI framework. This framework incorporates essential elements from various facets of sustainability, thereby enabling a comprehensive assessment of green technology cooperation. With the technical transfer mechanism in the cooperative process, there are the key four pillars; Green Sustainability (GS), Green Technology (GT), Economy & Society (ES), and Governance & Policy (GP), as presented in Table 4.

Table 4.

The Components within the 4 Pillars of the Conceptual Framework of GTCI

A composite indicator is a mathematical amalgamation of individual indicators that capture various aspects of a particular concept (Freudenberg, 2003; Nardo et al., 2005). The development of the Green Technology Cooperation Index (GTCI) comprises several stages that require subjective judgment. These stages encompass the selection of indicators, addressing missing data, determining an aggregation model, assigning weights to the indicators, and more. It is imperative to pinpoint sources of subjectivity or imprecise assessments and employ uncertainty and sensitivity analyses to uphold the quality and dependability of the GTCI. In this study, the GTCI comprises a set of indicators focused on the four pillars of Green Sustainability, Green Technology, Economy & Society, and Governance & Policy.

2.1. Description of GTCI Components

Pillar 1: Green Sustainability (GS)

The Green Sustainability (GS) pillar of the GTCI transcends a mere evaluative role, positioning itself as an initiative-taking framework actively contributing to the enhancement of overall sustainability. Aligned with broader environmental objectives, the GTCI ensures that green technology plays a pivotal role in fostering a resilient and sustainable global environment. Emphasizing sustainability within the broader assessment framework, this component meticulously evaluates initiatives addressing environmental challenges, with a targeted focus on key aspects.

A primary metric within this pillar is the assessment of efforts aimed at reducing greenhouse gas emissions. Effectiveness is measured through initiatives fostering energy efficiency and developing renewable energy sources, comprehensively evaluating the impact of green technology cooperation in minimizing the carbon footprint and promoting cleaner production and resource cycling.

Another crucial element involves a comprehensive evaluation of initiatives dedicated to preserving and protecting ecosystems, including measures addressing air and water quality. The assessment scrutinizes how green technology cooperation contributes to maintaining the delicate balance of ecosystems on both local and global scales. Promoting biodiversity is a key focus, acknowledging the vital importance of sustaining diverse and resilient ecosystems.

Pillar 2: Green Technology (GT)

The Green Technology (GT) pillar is a distinctive component of the GTCI, as it considers the technical transfer mechanism and cooperation process illustrated in Figures 2 and 3, respectively. This pillar includes a thorough evaluation of the status and availability of each green technology. This assessment is accompanied by an examination of initiatives aimed at building capacity for green technology adoption, ensuring that recipient countries are prepared for a seamless and successful technology transfer process.

A meticulous evaluation is conducted to determine the status of each green technology. This includes a detailed assessment of the availability and implementation status of various green technologies. Simultaneously, initiatives for capacity building are examined to understand the readiness of recipient countries. This ensures that these countries can effectively adopt and integrate new green technologies, paving the way for a successful technology transfer process.

The GT pillar places a central focus on international collaboration, recognizing the importance of cross-border partnerships, best practices exchange, and capacity-building efforts. By facilitating these collaborations, the pillar aims to ensure that countries are well-prepared to adopt green technologies. This international cooperation is essential for addressing global environmental challenges and achieving sustainable development goals

Innovation efforts in green technology are a crucial component of the GT pillar. This includes analyzing both public and private investment in research, development, and demonstration (RD&D) activities. Public spending on RD&D, combined with the active involvement of private firms and research institutes, plays a vital role in driving innovation. Additionally, tracking the number and quality of patents filed and publications produced related to green technology provides valuable insights into the progress and impact of these investments. These investments are essential for developing new green technologies and preparing them for subsequent commercialization.

The GT pillar recognizes the pivotal role of local technical infrastructure in the successful transfer and adoption of green technologies. Emphasis is placed on public and private partnerships, which form the cornerstone of building and sustaining robust technical foundations. Collaboration between public entities and private companies is crucial for creating the infrastructure needed to support green technology. This collaboration significantly contributes to global resource harmonization and the overall success of technology transfer efforts.

Commercialization is another critical dimension within the GT pillar. The pillar examines the efforts of various actors, including corporations, agencies, think tanks, and research institutes, throughout the RD&D process. These efforts shape the trajectory of the entire technology transfer process. The dynamic interplay of technology push and market pull factors is highlighted, with companies actively engaged in developing, refining, and demonstrating green technologies to ensure their market viability and impact.

By focusing on these aspects, the Green Technology Pillar provides a comprehensive evaluation of green technology cooperation. It highlights the importance of readiness, international collaboration, innovation, infrastructure, and commercialization in driving the successful adoption and transfer of green technologies. This holistic approach ensures that all relevant factors are considered, providing a complete picture of a country's capabilities and progress in green technology.

Pillar 3: Economy & Society (ES)

The Economy & Society (ES) pillar provides a detailed exploration of the economic and societal dimensions, unraveling the intricate interplay between green technology initiatives and their impact on both economic prosperity and social well-being. The assessment delves into the economic benefits of enhancing environmental quality, scrutinizing how collaborative endeavors in green technology contribute to an overall improvement in environmental conditions and recognizing the tangible economic advantages linked to such enhancements. The emphasis lies in understanding the symbiotic relationship between environmental betterment and economic gains.

Moving forward, a critical lens is applied to the efficiency of resource utilization and cost-effectiveness. This facet evaluates the judicious use of resources and the economic viability of deploying green technology initiatives, ensuring they are not only environmentally sustainable but also resource efficient and economically sound. Market opportunities and economic growth take center stage as the analysis progresses.

The components extend to the potential market avenues generated through green technology cooperation, gauging the impact of these initiatives on fostering broader economic growth and recognizing the pivotal role green technologies play in propelling economic advancement. The assessment then shifts to financial support mechanisms, investigating the availability and effectiveness of financial structures supporting green technology initiatives. This dimension underscores the financial underpinning required for the successful implementation of these initiatives, ensuring their sustainability. The ES pillar thus encapsulates the comprehensive impact of green technology on both the economic and societal aspects, emphasizing a balanced and sustainable approach.

Pillar 4: Governance & Policy (GP)

The Governance & Policy (GP) pillar within GTCI evaluates the policy landscape, focusing on the regulatory framework, incentives, and international compliance measures that shape the trajectory of green technology initiatives. The examination involves a thorough scrutiny of the Regulatory Framework, comprehensively analyzing the legal and regulatory structures governing green technology cooperation. This ensures a conducive and stable environment for collaborative efforts.

Various Incentives, a critical aspect of government policies, are assessed, including subsidies, tax incentives, tariffs, and other financial inducements provided to encourage green technology initiatives. The effectiveness and alignment of these incentives with sustainability goals are key focal points. The analysis extends to understanding environmental and climate policies considering the next generation, assessing their comprehensiveness, relevance, and impact on fostering green technology cooperation.

On the other hand, the effectiveness of governance plays another key role in assessing green technology cooperation. This effectiveness is evaluated through its approach and its overall impact, which necessitates structured communication within the government sphere.

The evaluation then shifts towards compliance with international agreements, critically assessing a country's adherence to global initiatives related to environmental protection and sustainable development. It examines how well a nation aligns its policies and practices with international agreements, reinforcing the cooperative spirit essential for effective green technology transfer.

These components make a fundamental assumption that countries are dedicated to common objectives and actively participate in technological cooperation to facilitate the green technology transition. The aim is to implement the necessary technologies and work together to achieve these shared goals by a specific target year.

Distinct from existing indices, GTCI incorporates considerations for resources dedicated to the next generation. The GP component serves as a crucial pillar, ensuring that the regulatory environment is conducive, incentives are strategically aligned, and policies resonate with international aspirations for sustainable and environmentally responsible technological advancements.

2.2. Distinction from Existing Indices

Through the components of GTCI, the development of the Green Technology Cooperation Index (GTCI) is driven by several specific rationales and novel aspects that address the limitations of existing indices. These rationales highlight the need for a more comprehensive and dynamic approach to evaluating green technology cooperation.

Existing indices, such as the ESG and GGI, often focus solely on either environmental impacts or economic growth. In contrast, the GTCI uniquely integrates both technological and policy dimensions, recognizing the interplay between these factors in driving green growth. This comprehensive approach provides a more accurate and holistic assessment of a country’s readiness for and effectiveness in green technology cooperation.

Many current indices, like the EPI, CCPI, CCCI, and ESI, are designed with a narrow focus, often concentrating on specific sectors or purposes. The GTCI, in contrast, considers the multifaceted nature of green growth, incorporating economic, social, environmental, and technological factors. This holistic analysis ensures that all relevant aspects of green technology cooperation are evaluated, providing a more complete picture of a country’s capabilities and progress.

The rapid pace of technological change in green technology can render existing indices quickly outdated. The GTCI is designed to be dynamic and adaptable, capable of incorporating the latest developments and innovations in green technology. This flexibility ensures that the index remains relevant and accurate over time, reflecting current trends and shifts in both technology and policy.

Existing indices often focus on specific sectors without considering the broader impacts necessary for effective international cooperation. The GTCI emphasizes the importance of cross-sectoral impacts and the need for countries to cooperate on a global scale. This focus on international cooperation is crucial for addressing global challenges such as climate change, which require coordinated efforts across national boundaries.

The GTCI is built on a conceptual framework consisting of four pillars: green sustainability, green technology, economy and society, and governance and policy. This structured approach ensures that the main critical components of green technology cooperation are systematically evaluated, providing clear criteria and norms for assessing a country’s readiness and effectiveness in collaborative efforts.

Technology transfer is a pivotal aspect of international green technology cooperation that is often underemphasized in existing indices. The GTCI places a strong emphasis on technology transfer, recognizing its significance in promoting sustainable development and mitigating climate change. By highlighting technology transfer, the GTCI provides valuable insights into how countries can share and adopt green technologies to achieve common environmental goals.

The novelty of the GTCI lies in its comprehensive, dynamic, and holistic approach to evaluating green technology cooperation. It addresses the limitations of existing indices by integrating technological and policy dimensions, considering broader impacts and international cooperation, and emphasizing technology transfer. This makes the GTCI a valuable tool for policymakers, businesses, and organizations aiming to promote sustainable economic growth and mitigate climate change at national and international levels.

The GTCI serves a unique role in evaluating green technology cooperation among countries by providing a comprehensive assessment of green technology mechanisms and cooperation processes. It complements existing indices, which assess various components of green technology independently. The GTCI can indeed be used alongside other indices to provide a more complete picture of green technology efforts. For instance, while other indices may focus on specific aspects like environment or economics related to sustainability itself, the GTCI integrates these elements to offer a holistic view of international collaboration in green technology.

Discussion

This study offers a comprehensive exploration of green technology cooperation, employing a balanced integration of quantitative and qualitative dimensions. The synergy between these approaches is essential for gaining nuanced insights of the complexities inherent in international collaboration for sustainable development, aiming to create a global balance and ensure environmental safety for the next generation through green technology.

While quantitative metrics provide a crucial starting point, their limitations become apparent when addressing the multifaceted nature of green technology cooperation. Recognizing this, the study advocates for a holistic evaluation that incorporates qualitative insights and considers diverse contextual factors. This approach forms the basis for flexible and informed decision-making in the selection of countries for collaborative endeavors.

This study focuses on the supply side of the economic market in managing technical transfer for global harmonization. Although the demand side, including consumers and export entities, is fundamental (Fujimori et al., 2023), the study focuses on the conceptual framework and schematic flow of technical transfer mechanisms in the cooperative process. Notably, it does not extensively delve into commercialization from a business perspective (Hällerstrand et al., 2023; Horne and Fichter, 2022). While transferee countries often have numerous startups dealing with innovative technology adoption, this study specifically examines national-level technology transfer through the cooperation process. Future research could explore these dimensions to provide a more comprehensive understanding of the entire spectrum of technology transfer processes.

Moreover, the study addresses the broader mechanism of economic transition, emphasizing the cooperative process between countries for sharing green technology knowledge. While there are two technical pathways for economic transition—fossil fuel-based (brown sector) and low-emission (green sector) (Shayegh et al., 2023)—this study examines the overall mechanism, emphasizing the cooperative process between countries for sharing green technology knowledge and related activities.

Qualitatively, the study explores the recurrent nature of cooperation between countries, shedding light on government policy focusing on the green technology transfer such as types of technologies transferred, and overall effectiveness. This exploration enables a deeper understanding of intercountry dynamics, identifying successful collaborations, and recognizing challenges faced.

The integration of quantitative and qualitative components in four pillars provides a richer perspective for green technology cooperation. This approach not only enhances the efficiency of collaborative efforts but also contributes to a nuanced comprehension of the intricate landscape of green technology cooperation for sustainable development. The GTCI framework aligns with all sustainable development goals (SDGs), particularly those related to climate action (SDG13), affordable and clean energy (SDG7), industry, innovation, and infrastructure (SDG9), and sustainable cities and communities (SDG11). By assessing green technology cooperation, the GTCI provides valuable insights into how countries are progressing towards these goals. Furthermore, extending the framework to include specific sectors, such as IT and big data, can advance green technology cooperation in areas like smart grids, IoT, and green building standards for efficient energy management.

Limitations

This study’s insights and initial framework lay the groundwork for further research, though there are notable limitations. One challenge is encapsulating the entirety of qualitative factors and addressing potential biases within historical data. The dynamic nature of technology and international relations introduces the possibility of certain indicators losing relevance over time.

Addressing these limitations in future research endeavors is critical for refining the approach and ensuring the ongoing pertinence and efficacy of the GTCI. Specifically, future research should focus on specifying the components of the GTCI in detail, overcoming existing limitations, and further refining the methodology to achieve a more comprehensive and accurate assessment of green technology cooperation.

Conclusion

This study, by thoroughly examining technical transfer mechanisms and cooperation processes, introduces the Green Technology Cooperation Index (GTCI) as a novel metric for evaluating international collaboration in green technology. The GTCI distinguishes itself from existing indices through its unique focus on green technology and cooperation readiness. The study evaluates the GTCI’s effectiveness in addressing interconnected factors that influence sustainable development and climate action, underscoring its potential as a comprehensive evaluation tool. Based on these findings, the study offers recommendations to enhance global green technology cooperation. It concludes by emphasizing the necessity for further quantitative modeling and empirical research to refine the GTCI and its application. This research contributes to the broader discourse on effective global environmental cooperation, aiming to foster sustainable development and climate action.

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