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Transboundary Pollution and the Welfare Effects of Technology Transfer

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  • Yasuhiro Takarada

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Abstract

The purpose of this paper is to examine the welfare effects of pollution abatement technology transfer in a two-good two-country model with transboundary pollution. In each country, one industry emits pollution as a joint product of output and the sum of domestic and cross-border pollution decreases productivity of the other industry. Then, we show that technology transfer can bene?t the recipient country regardless of the level of cross-border pollution. Moreover, the donor country gains from technology transfer if all pollution is transboundary but it may harm the donor country with out cross-border pollution. We demonstrate that the effects of technology transfer depend on the trade pattern as well as cross-border pollution. Keywords: Environment; Pollution; Technology transfer; Pareto-improving transfer JEL classi?cation: D62; F18; O39
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Suggested Citation

  • Yasuhiro Takarada, 2005. "Transboundary Pollution and the Welfare Effects of Technology Transfer," Journal of Economics, Springer, vol. 85(3), pages 251-275, September.
  • Handle: RePEc:kap:jeczfn:v:85:y:2005:i:3:p:251-275
    DOI: 10.1007/s00712-005-0134-x
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    References listed on IDEAS

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    1. Copeland, Brian R. & Taylor, M. Scott, 1999. "Trade, spatial separation, and the environment," Journal of International Economics, Elsevier, vol. 47(1), pages 137-168, February.
    2. Benarroch, Michael & Thille, Henry, 2001. "Transboundary pollution and the gains from trade," Journal of International Economics, Elsevier, vol. 55(1), pages 139-159, October.
    3. Wolfgang Buchholz & Kai Konrad, 1994. "Global environmental problems and the strategic choice of technology," Journal of Economics, Springer, vol. 60(3), pages 299-321, October.
    4. John Stranlund, 1996. "On the strategic potential of technological aid in international environmental relations," Journal of Economics, Springer, vol. 64(1), pages 1-22, February.
    5. Takumi Naito, 2003. "Pareto-improving Untied Aid with Environmental Externalities," Journal of Economics, Springer, vol. 80(2), pages 161-169, October.
    6. Unteroberdoerster, Olaf, 2001. "Trade and Transboundary Pollution: Spatial Separation Reconsidered," Journal of Environmental Economics and Management, Elsevier, vol. 41(3), pages 269-285, May.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. repec:ebl:ecbull:v:6:y:2007:i:5:p:1-8 is not listed on IDEAS
    2. Tohru Naito, 2010. "Regional agglomeration and transfer of pollution reduction technology under the presence of transboundary pollution," Regional Science Policy & Practice, Wiley Blackwell, vol. 2(2), pages 157-175, November.
    3. Zeineb Dinar, 2014. "Transboundary Pollution, R&D Spillovers, Absorptive Capacity and International Trade," International Journal of Economics and Financial Issues, Econjournals, vol. 4(3), pages 501-513.
    4. Takeshi Iida & Kenji Takeuchi, 2010. "Environmental Technology Transfer via Free Trade," Economics Bulletin, AccessEcon, vol. 30(2), pages 948-960.
    5. Dirk T.G. Rübbelke & Vivekananda Mukherjee & Tilak Sanyal, 2008. "Technology Transfer in the Non-traded Sector as a Means to Combat Global Warming," Working Papers 2008.78, Fondazione Eni Enrico Mattei.
    6. Martin Altemeyer‐Bartscher & Dirk T. G. Rübbelke & Eytan Sheshinski, 2010. "Environmental Protection and the Private Provision of International Public Goods," Economica, London School of Economics and Political Science, vol. 77(308), pages 775-784, October.
    7. Gunter Stephan & Georg Müller-Fürstenberger, 2014. "Global Warming, Technological Change and Trade in Carbon Energy: Challenge or Threat?," Discussion Papers of DIW Berlin 1397, DIW Berlin, German Institute for Economic Research.
    8. Yasuhiro Takarada, 2007. "Welfare effects of international income transfers under transboundary pollution," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 8(2), pages 143-157, June.
    9. Wei-Bin Zhang, 2014. "Global Economic Growth and Environmental Change," SPOUDAI Journal of Economics and Business, SPOUDAI Journal of Economics and Business, University of Piraeus, vol. 64(3), pages 3-29, July-Sept.
    10. Yi Li, 2019. "Apportioning indivisible damage and strategic diffusion of pollution abatement technology," Journal of Economics, Springer, vol. 126(1), pages 19-42, January.
    11. Takumi HAIBARA, 2007. "Environmental Funds, Terms of Trade, and Welfare," GSICS Working Paper Series 15, Graduate School of International Cooperation Studies, Kobe University.
    12. Ben Youssef, Slim, 2009. "Transboundary Pollution and Absorptive Capacity," MPRA Paper 17158, University Library of Munich, Germany.
    13. Gunter Stephan & Georg Müller-Fürstenberger, 2015. "Global Warming, Technological Change and Trade in Carbon Energy: Challenge or Threat?," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 62(4), pages 791-809, December.

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    More about this item

    Keywords

    transboundary pollution technology transfer; Pareto improvement; D62; F18; O39;
    All these keywords.

    JEL classification:

    • D62 - Microeconomics - - Welfare Economics - - - Externalities
    • F18 - International Economics - - Trade - - - Trade and Environment
    • O39 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Other

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