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

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  • Azusa Itoh
  • 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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    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.
    3. 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.
    4. Yasuhiro Takarada, 2005. "Transboundary Pollution and the Welfare Effects of Technology Transfer," Journal of Economics, Springer, vol. 85(3), pages 251-275, September.
    5. Kenji Kondo, 2013. "Renewable Resources, Environmental Pollution, and International Migration," ERSA conference papers ersa13p33, European Regional Science Association.
    6. Martin Altemeyer-Bartscher & Dirk T. G. Rübbelke & Eytan Sheshinski, 2007. "Policies to Internalize Reciprocal International Spillovers," CESifo Working Paper Series 2058, CESifo.
    7. 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.
    8. 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.
    9. Muneyuki Saito & Yasuyuki Sugiyama, 2007. "Transfer of Pollution Abatement Technology and Unemployment," Economics Bulletin, AccessEcon, vol. 6(5), pages 1-8.

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