Environmental Technology Transfer via Free Trade
AbstractThis paper considers a model of international duopoly with global pollution to investigate the impact of tariff policy and licensing contracts on environmental technology transfer. Our main finding is that free trade is not always preferable. When the protection of intellectual property rights (IPR) is within a certain range, there is a possibility that the total world welfare is higher under a positive tariff rate than under a zero tariff rate. This implies that the protection of IPR being beyond the range is a prerequisite for the justification of free trade.
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Bibliographic InfoArticle provided by AccessEcon in its journal Economics Bulletin.
Volume (Year): 30 (2010)
Issue (Month): 2 ()
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Environmental technology transfer; Free trade; Tariff protection; Licensing;
Other versions of this item:
- Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics
- L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance
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- Azusa Itoh & Makoto Tawada, 2003. "Environment, trade and the welfare gains from the transfer of pollution abatement technology," Economics of Governance, Springer, vol. 82(4), pages 519-534, November.
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- Kabiraj, Tarun & Marjit, Sugata, 2003. "Protecting consumers through protection: The role of tariff-induced technology transfer," European Economic Review, Elsevier, vol. 47(1), pages 113-124, February.
- Mukherjee, Arijit & Pennings, Enrico, 2006. "Tariffs, licensing and market structure," European Economic Review, Elsevier, vol. 50(7), pages 1699-1707, October.
- Takao Asano & Noriaki Matsushima, 2012. "Environmental regulation and technology transfers," ISER Discussion Paper 0862, Institute of Social and Economic Research, Osaka University.
- Takeshi Iida & Kenji Takeuchi, 2011. "Does free trade promote environmental technology transfer?," Journal of Economics, Springer, vol. 104(2), pages 159-190, October.
- Takeshi Iida & Kenji Takeuchi, 2010. "Policy-Induced Environmental Technology Transfer," Discussion Papers 1008, Graduate School of Economics, Kobe University.
- Akira Miyaoka, 2014. "Environmental Technology Transfer in a Cournot Duopoly: The Case of Fixed-Fee Licensing," Discussion Papers in Economics and Business 14-08, Osaka University, Graduate School of Economics and Osaka School of International Public Policy (OSIPP).
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