Compensating developing countries for use of environmentally sound technologies

In some cases, developing countries have demanded compensation from developed countries for the difference in investment costs between environmentally sounder technology and the existing alternative in use.

1. In the long run, this is not a desirable procedure, since it exacts an opportunity cost in terms of resources available in the developed countries for development aid. The long-run objective should rather be to phase out such special deals because, although they may be represented as add-ons in, the short-term, they will inevitably eat into development aid in the long-term, and they may retard the build-up of endogenous innovation capacity in respect of the technologies involved.

1. Supporting use of environmentally sound technology
2. Providing environmental assistance to developing countries
3. Providing compensation
4. Increasing cooperation on environmentally sound technology

1. Promoting interests of developing countries in world trade agreements

1. Ensuring participation of developing countries in international research

1. Unused
2. Underuse
3. Abuse