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Technology transfer with transboundary pollution: A signalling approach

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  • Fuhai Hong

Abstract

There are increasing complaints from the developing world that developed countries seem reluctant to transfer green technology, despite its benefits in helping to solve the climate problem. Identifying a signalling effect of technology transfer that was neglected by the previous literature, this paper offers a rationale for this reluctance in a NorthSouth model with transboundary pollution. In a benchmark case with complete information, the North makes complete technology transfer, leading to a Pareto improvement. However, if the North's valuation on climate damage is its private information, the North does not completely transfer the technology in almost all of the equilibria.

Suggested Citation

  • Fuhai Hong, 2014. "Technology transfer with transboundary pollution: A signalling approach," Canadian Journal of Economics, Canadian Economics Association, vol. 47(3), pages 953-980, August.
    • Handle: RePEc:cje:issued:v:47:y:2014:i:3:p:953-980
    DOI: 10.1111/caje.12102
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    Cited by:

    1. Hao Xu & Deqing Tan, 2023. "Optimal Abatement Technology Licensing in a Dynamic Transboundary Pollution Game: Fixed Fee Versus Royalty," Computational Economics, Springer;Society for Computational Economics, vol. 61(3), pages 905-935, March.
    2. Dapeng Cai & Jie Li, 2018. "North–South Negotiations on Emission Reductions: A Bargaining Approach," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 71(1), pages 157-177, September.
    3. Fuhai Hong & Yu Pang, 2024. "Mitigation and adaptation: an informational perspective," Journal of Economics, Springer, vol. 141(1), pages 57-92, January.
    4. Kai A. Konrad & Marcel Thum, 2018. "Does a Clean Development Mechanism Facilitate International Environmental Agreements?," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 69(4), pages 837-851, April.
    5. Chiu Yu Ko & Bo Shen & Xuyao Zhang, 2023. "Can corruption encourage clean technology transfer?," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 25(3), pages 459-492, June.
    6. Matthieu Glachant & Julie Ing & Jean Philippe Nicolai, 2017. "The Incentives for North-South Transfer of Climate-Mitigation Technologies with Trade in Polluting Goods," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 66(3), pages 435-456, March.

    More about this item

    JEL classification:

    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

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