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Environmental Technology Transfer via Free Trade

Author

Listed:
  • Takeshi Iida

    (Graduate School of Economics, Kobe University)

  • Kenji Takeuchi

    (Graduate School of Economics, Kobe University)

Abstract

This 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.

Suggested Citation

  • Takeshi Iida & Kenji Takeuchi, 2010. "Environmental Technology Transfer via Free Trade," Economics Bulletin, AccessEcon, vol. 30(2), pages 948-960.
    • Handle: RePEc:ebl:ecbull:eb-09-00803
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    File URL: http://www.accessecon.com/Pubs/EB/2010/Volume30/EB-10-V30-I2-P88.pdf
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    Cited by:

    1. Takeshi Iida & Kenji Takeuchi, 2011. "Does free trade promote environmental technology transfer?," Journal of Economics, Springer, vol. 104(2), pages 159-190, October.
    2. Takao Asano & Noriaki Matsushima, 2014. "Environmental regulation and technology transfers," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 47(3), pages 889-904, August.
    3. Takeshi Iida & Kenji Takeuchi, 2010. "Policy-Induced Environmental Technology Transfer," Discussion Papers 1008, Graduate School of Economics, Kobe University.
    4. 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.
    5. Akira Miyaoka, 2014. "Environmental technology transfer in a Cournot duopoly: the case of fixed-fee licensing," Economics Bulletin, AccessEcon, vol. 34(4), pages 2253-2266.

    More about this item

    Keywords

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    JEL classification:

    • 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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