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Can Technology Transfer Induce the South to Sign International Environmental Agreements? – revised version: Technology Transfer and the South’s Participation in an International Environmental Agreement

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Abstract

We develop a North-South model of international trade and transboundary pollution to analyze the relationship between environmental technology transfer and the South's incentive to sign an international environmental agreement (IEA). First, we show that technology transfer could either increase or reduce the South's incentive to sign the IEA. Second, we show that the South's participation in the IEA would reduce the market incentive of technology transfer. Both results have very clear policy implications for (i) the sequence of technology transfer and the South's IEA membership and (ii) the legitimacy of South's subsidies for technology transfer.

Suggested Citation

  • Larry D. Qiu & Zhihao Yu, 2003. "Can Technology Transfer Induce the South to Sign International Environmental Agreements? – revised version: Technology Transfer and the South’s Participation in an International Environmental Agreemen," Carleton Economic Papers 03-01, Carleton University, Department of Economics, revised Aug 2009.
  • Handle: RePEc:car:carecp:03-01
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    File URL: http://www1.carleton.ca/economics/research/working-papers/carleton-economic-papers-cep-2001-2010/
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    1. Joel Fried, 1973. "Money, Exchange And Growth," Economic Inquiry, Western Economic Association International, vol. 11(3), pages 285-301, September.
    2. Jones, Robert A, 1976. "The Origin and Development of Media of Exchange," Journal of Political Economy, University of Chicago Press, vol. 84(4), pages 757-775, August.
    3. Saving, Thomas R, 1971. "Transactions Costs and the Demand for Money," American Economic Review, American Economic Association, vol. 61(3), pages 407-420, June.
    4. J. Stephen Ferris, 1981. "A Transactions Theory of Trade Credit Use," The Quarterly Journal of Economics, Oxford University Press, vol. 96(2), pages 243-270.
    5. J. S. Ferris & J. A. Galbraith, 2003. "Indirect convertibility as a money rule for inflation targeting," Applied Financial Economics, Taylor & Francis Journals, vol. 13(10), pages 753-761.
    6. Klein, Benjamin & Leffler, Keith B, 1981. "The Role of Market Forces in Assuring Contractual Performance," Journal of Political Economy, University of Chicago Press, vol. 89(4), pages 615-641, August.
    7. Ritter, Joseph A, 1995. "The Transition from Barter to Fiat Money," American Economic Review, American Economic Association, pages 134-149.
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    More about this item

    Keywords

    Trade and environment; Environmental technology transfer; Imperfect competition;

    JEL classification:

    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • F18 - International Economics - - Trade - - - Trade and Environment

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