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Polluting technologies and sustainable economic development

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Author Info

  • Luisito Bertinelli

    ()
    (CREA, Université du Luxembourg)

  • Eric Strobl

    ()
    (Ecole Polytechnique Paris)

  • Benteng Zou

    ()
    (Institute of Mathematical Economics, Bielefeld University)

Abstract

We study how the import of older and more polluting technologies alters the relationship between output and environmental quality in developing countries within a vintage capital framework. Our results show that old technologies prolong the period until which pollution may eventually decrease and cause this turning point to be reached at a higher level of pollution. An empirical analysis using export data of vintage technologies from the US and Europe to developing countries supports our theoretical findings.

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File URL: http://www.imw.uni-bielefeld.de/papers/files/imw-wp-379.pdf
File Function: First version, 2006
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Bibliographic Info

Paper provided by Bielefeld University, Center for Mathematical Economics in its series Working Papers with number 379.

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Length: 29 pages
Date of creation: Feb 2006
Date of revision:
Handle: RePEc:bie:wpaper:379

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Related research

Keywords: environmental quality; sustainable development; vintage technologies;

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References

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  1. Feichtinger, G. & Hartl, R.F. & Kort, P.M. & Veliov, V., 2004. "Dynamic investment behavior taking into account ageing of the capital good," Open Access publications from Tilburg University urn:nbn:nl:ui:12-140939, Tilburg University.
  2. Grossman, Gene M & Krueger, Alan B, 1995. "Economic Growth and the Environment," The Quarterly Journal of Economics, MIT Press, vol. 110(2), pages 353-77, May.
  3. Boucekkine, Raouf & Germain, Marc & Licandro, Omar, 1997. "Replacement Echoes in the Vintage Capital Growth Model," Journal of Economic Theory, Elsevier, vol. 74(2), pages 333-348, June.
  4. Danilo Pelletiere & Kenneth A. Reinert, 2004. "Used automobile protection and trade: Gravity and ordered probit analysis," Empirical Economics, Springer, vol. 29(4), pages 737-751, December.
  5. David F. Bradford & Rebecca Schlieckert & Stephen H. Shore, 2000. "The Environmental Kuznets Curve: Exploring A Fresh Specification," NBER Working Papers 8001, National Bureau of Economic Research, Inc.
  6. Clerides, Sofronis, 2008. "Gains from trade in used goods: Evidence from automobiles," Journal of International Economics, Elsevier, vol. 76(2), pages 322-336, December.
  7. Parente, Stephen L & Prescott, Edward C, 1994. "Barriers to Technology Adoption and Development," Journal of Political Economy, University of Chicago Press, vol. 102(2), pages 298-321, April.
  8. BOUCEKKINE, Raouf & MARTINEZ, Blanca, . "Replacement, adoption and economic dynamics: lessons from a canonical creative destruction model," CORE Discussion Papers RP -1657, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  9. Stokey, Nancy L, 1998. "Are There Limits to Growth?," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 39(1), pages 1-31, February.
  10. Smith, M. A. M., 1974. "International trade in second-hand machines," Journal of Development Economics, Elsevier, vol. 1(3), pages 261-278, December.
  11. Susmita Dasgupta & Benoit Laplante & Hua Wang & David Wheeler, 2002. "Confronting the Environmental Kuznets Curve," Journal of Economic Perspectives, American Economic Association, vol. 16(1), pages 147-168, Winter.
  12. Navaretti, Giorgio Barba & Soloaga, Isidro & Takacs, Wendy, 2000. "Vintage Technologies and Skill Constraints: Evidence from U.S. Exports of New and Used Machines," World Bank Economic Review, World Bank Group, vol. 14(1), pages 91-109, January.
  13. Mulder, Peter & de Groot, Henri L. F. & Hofkes, Marjan W., 2003. "Explaining slow diffusion of energy-saving technologies; a vintage model with returns to diversity and learning-by-using," Resource and Energy Economics, Elsevier, vol. 25(1), pages 105-126, February.
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Cited by:
  1. Luisito Bertinelli & Eric Strobl & Benteng Zou, 2005. "Sustainable economic development and the environment: Theory and evidence," Working Papers 369, Bielefeld University, Center for Mathematical Economics.

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