Tariffs and the adoption of clean technology under asymmetric information
AbstractThis paper examines the effect of a tariff on the decision of a foreign monopolist to adopt `clean' technology, which reduces the flow of a negative cross-border externality. The clean technology increases the marginal cost of production relative to the dirty technology, but only the firm knows the extent of the increase. Under complete information, despite its protectionist motivation, the importing country's optimal tariff induces the firm to adopt the clean technology if and only if it is globally efficient to do so. Under incomplete information, this efficiency property is disrupted, and the firm biases its choice in favour of dirty technology.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Canadian Economics Association in its journal Canadian Journal of Economics.
Volume (Year): 40 (2007)
Issue (Month): 4 (November)
Contact details of provider:
Postal: Canadian Economics Association Prof. Steven Ambler, Secretary-Treasurer c/o Olivier Lebert, CEA/CJE/CPP Office C.P. 35006, 1221 Fleury Est Montréal, Québec, Canada H2C 3K4
Web page: http://economics.ca/cje/
More information through EDIRC
Other versions of this item:
- Rodney Ludema & Taizo Takeno, 2006. "Tariffs and the Adoption of Clean Technology Under Asymmetric Information," Working Papers gueconwpa~06-06-09, Georgetown University, Department of Economics.
- F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
- F18 - International Economics - - Trade - - - Trade and Environment
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Alberto Gallegos & Pierre Regibeau, 2004.
"Managed Trade, Trade Liberalisation and Local Pollution,"
Economics Discussion Papers
580, University of Essex, Department of Economics.
- Regibeau Pierre M & Gallegos Alberto, 2004. "Managed Trade, Trade Liberalisation and Local Pollution," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 3(2), pages 1-26, November.
- Gallegos, Alberto & Régibeau, Pierre, 2004. "Managed Trade, Trade Liberalization and Local Pollution," CEPR Discussion Papers 4491, C.E.P.R. Discussion Papers.
- Crowley, Meredith A., 2006.
"Do safeguard tariffs and antidumping duties open or close technology gaps?,"
Journal of International Economics,
Elsevier, vol. 68(2), pages 469-484, March.
- Meredith A. Crowley, 2002. "Do safeguard tariffs and antidumping duties open or close technology gaps?," Working Paper Series WP-02-13, Federal Reserve Bank of Chicago.
- Ludema, Rodney D & Wooton, Ian, 1997. "International Trade Rules and Environmental Cooperation under Asymmetric Information," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 38(3), pages 605-25, August.
- Choi, Jay Pil, 1995.
"Optimal tariffs and the choice of technology Discriminatory tariffs vs. the 'Most Favored Nation' clause,"
Journal of International Economics,
Elsevier, vol. 38(1-2), pages 143-160, February.
- Choi, J.P., 1992. "Optimal Tariffs and the Choice of Technology Discriminatory Tariffs vs. the "Most Favored Nation" Clause," Discussion Papers 1992_46, Columbia University, Department of Economics.
- Markusen, James R., 1975. "International externalities and optimal tax structures," Journal of International Economics, Elsevier, vol. 5(1), pages 15-29, February.
- Rodney D. Ludema & Ian Wooton, 1994.
"Cross-Border Externalities and Trade Liberalization: The Strategic Control of Pollution,"
Canadian Journal of Economics,
Canadian Economics Association, vol. 27(4), pages 950-66, November.
- Ludema, R.D. & Wooton, I., 1992. "Cross-Border Externalities and trade Liberalization: The Strategic Control of Pollution," UWO Department of Economics Working Papers 9202, University of Western Ontario, Department of Economics.
- Takeshi Iida & Kenji Takeuchi, 2010. "Policy-Induced Environmental Technology Transfer," Discussion Papers 1008, Graduate School of Economics, Kobe University.
- Takeshi Iida & Kenji Takeuchi, 2011. "Does free trade promote environmental technology transfer?," Journal of Economics, Springer, vol. 104(2), pages 159-190, October.
- Slim Ben Youssef, 2010.
"Adoption of a cleaner technology by a monopoly under incomplete information,"
AccessEcon, vol. 30(1), pages 734-743.
- Ben Youssef, Slim, 2008. "Adoption of a Cleaner Technology by a Monopoly Under Incomplete Information," MPRA Paper 9879, University Library of Munich, Germany, revised Jul 2008.
- Robert W. Staiger & Alan O. Sykes, 2009. "International Trade and Domestic Regulation," NBER Working Papers 15541, National Bureau of Economic Research, Inc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Prof. Werner Antweiler).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.