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Environment, trade and the welfare gains from the transfer of pollution abatement technology

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  • Azusa Itoh

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  • Makoto Tawada

    ()

Abstract

We analyse in this article the welfare effect of trade and environmental technology transfer from a developed country to a developing country. We use a two-country, two-sector and two-factor Ricardian general equilibrium model. The two industries are manufacturing and agriculture, and the pollution emitted from the manufacturing industry decreases the natural environment useful to agricultural production. We consider two cases. In the first case pollution in each country is local. In filethe second case pollution in one of the two countries is global. We analyse each case separately and obtain the following results. In the first case the developed country may be worse off if technology is transferred to the developing country. In the second case such a paradox never occurs. Copyright Springer-Verlag Berlin/Heidelberg 2003

Suggested Citation

  • Azusa Itoh & Makoto Tawada, 2003. "Environment, trade and the welfare gains from the transfer of pollution abatement technology," Economics of Governance, Springer, vol. 82(4), pages 519-534, November.
  • Handle: RePEc:spr:ecogov:v:82:y:2003:i:4:p:519-534 DOI: 10.1007/s10110-003-0165-z
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    References listed on IDEAS

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    1. Konrad, Kai A., 2002. "Investment in the absence of property rights; the role of incumbency advantages," European Economic Review, Elsevier, pages 1521-1537.
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    4. Grossman, Herschel I, 1994. "Production, Appropriation, and Land Reform," American Economic Review, American Economic Association, pages 705-712.
    5. Michelle R. Garfinkel & Stergios Skaperdas, 2000. "Conflict without Misperceptions or Incomplete Information," Journal of Conflict Resolution, Peace Science Society (International), pages 793-807.
    6. Garfinkel, M.R. & Skaperdas, S., 2000. "Conflict without Misperceptions or Incomplete Information: how the Future Matters," Papers 99-00-11, California Irvine - School of Social Sciences.
    7. Clark, Derek J & Riis, Christian, 1998. "Competition over More Than One Prize," American Economic Review, American Economic Association, pages 276-289.
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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. Takeshi Iida & Kenji Takeuchi, 2010. "Environmental Technology Transfer via Free Trade," Economics Bulletin, AccessEcon, vol. 30(2), pages 948-960.

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