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Environmental regulation and technology transfers

Author

Listed:
  • Takao Asano
  • Noriaki Matsushima

Abstract

This paper analyzes the situation in which a national government introduces environmental regulations. Within the framework of an international duopoly with environmental regulations, an environmental tax imposed by the government in the home country can induce a foreign firm with advanced abatement technology to license it to a domestic firm without this technology. Furthermore, when the domestic firm's production technology is less efficient than that of the foreign firm, the foreign firm may freely reveal its technology to the domestic firm. These improvements through the voluntary transfer of technology imply that environmental regulations have positive impacts on innovation.

Suggested Citation

  • Takao Asano & Noriaki Matsushima, 2014. "Environmental regulation and technology transfers," Canadian Journal of Economics, Canadian Economics Association, vol. 47(3), pages 889-904, August.
    • Handle: RePEc:cje:issued:v:47:y:2014:i:3:p:889-904
    DOI: 10.1111/caje.12100
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    Cited by:

    1. Chakraborty, Pavel & Chatterjee, Chirantan, 2017. "Does environmental regulation indirectly induce upstream innovation? New evidence from India," Research Policy, Elsevier, vol. 46(5), pages 939-955.
    2. Han Jiang & Qing Zhou & Chuan Hu & Meng Tian, 2025. "Carbon emission trading scheme and university technology transfer: does innovation quantity or quality matter?," The Journal of Technology Transfer, Springer, vol. 50(4), pages 1709-1738, August.
    3. Lidia Vidal-Meliá & Eva Camacho-Cuena & Miguel Ginés-Vilar, 2019. "Market size asymmetry and industrial policy in an international duopoly: Environmental tax vs. production subsidy," Working Papers 2019/01, Economics Department, Universitat Jaume I, Castellón (Spain).
    4. Cai, Hechang & Wang, Zilong & Zhang, Zhiwen & Xu, Liuyang, 2023. "Does environmental regulation promote technology transfer? Evidence from a partially linear functional-coefficient panel model," Economic Modelling, Elsevier, vol. 124(C).
    5. Naoto Aoyama & Emilson C.D. Silva, 2017. "Asymmetric Innovation Agreements under Environmental Regulation," CESifo Working Paper Series 6782, CESifo.
    6. Naoto Aoyama & Emilson Caputo Delfino Silva, 2022. "Endogenous Abatement Technology Agreements under Environmental Regulation," Games, MDPI, vol. 13(2), pages 1-30, April.
    7. Yen-Ju Lin & Yan-Shu Lin & Tsung-Han Chou & Pei-Cyuan Shih, 2024. "Environmental policy, licensing strategy, and social welfare," Journal of Economics, Springer, vol. 143(2), pages 141-159, October.
    8. Michal Friesl & Liam J. A. Lenten & Jan Libich & Petr Stehlík, 2017. "In search of goals: increasing ice hockey’s attractiveness by a sides swap," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 68(9), pages 1006-1018, September.
    9. Takao Asano & Noriaki Matsushima, 2014. "Environmental regulation and technology transfers," Canadian Journal of Economics, Canadian Economics Association, vol. 47(3), pages 889-904, August.
    10. CHENG, Haitao & YANASE, Akihiko, 2025. "International Transfers of Green Technology and Carbon Mitigation Outcomes," Discussion paper series HIAS-E-154, Hitotsubashi Institute for Advanced Study, Hitotsubashi University.

    More about this item

    JEL classification:

    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • F18 - International Economics - - Trade - - - Trade and Environment
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets

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