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Policy-Induced Environmental Technology Transfer

  • Takeshi Iida

    (Graduate School of Economics, Kobe University)

  • Kenji Takeuchi

    ()

    (Graduate School of Economics, Kobe University)

We investigate how environmental and trade policies affect the transfer of environmental technology in a two-country model with global pollution. By comparing free trade and tariff policy without commitment, the following results are obtained. First, the existence of an environmental policy in a local country induces technology transfer from a foreign country. Second, there is a possibility that free trade is preferable to a tariff policy for both countries even though free trade lowers the environmental tax rate. Third, the quantity of the local firmfs product decreases for higher environmental damage. On the other hand, import of environmentally efficient goods from the foreign country increases.

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File URL: http://www.econ.kobe-u.ac.jp/RePEc/koe/wpaper/2010/1008.pdf
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Paper provided by Graduate School of Economics, Kobe University in its series Discussion Papers with number 1008.

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Length: 37pages
Date of creation: Jun 2010
Date of revision:
Handle: RePEc:koe:wpaper:1008
Contact details of provider: Web page: http://www.econ.kobe-u.ac.jp
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  1. Leahy, Dermot & Neary, J Peter, 1998. "Strategic Trade and Industrial Policy Towards Dynamic Oligopolies," CEPR Discussion Papers 1968, C.E.P.R. Discussion Papers.
  2. Walz, Uwe & Wellisch, Dietmar, 1997. "Is free trade in the interest of exporting countries when there is ecological dumping?," Journal of Public Economics, Elsevier, vol. 66(2), pages 275-291, November.
  3. Lai, Yu-Bong & Hu, Chia-Hsien, 2008. "Trade agreements, domestic environmental regulation, and transboundary pollution," Resource and Energy Economics, Elsevier, vol. 30(2), pages 209-228, May.
  4. Burguet, Roberto & Sempere, Jaume, 2003. "Trade liberalization, environmental policy, and welfare," Journal of Environmental Economics and Management, Elsevier, vol. 46(1), pages 25-37, July.
  5. Takeshi Iida & Kenji Takeuchi, 2009. "Environmental Technology Transfer via Free Trade," Discussion Papers 0904, Graduate School of Economics, Kobe University.
  6. Rodney D. Ludema & Taizo Takeno, 2007. "Tariffs and the adoption of clean technology under asymmetric information," Canadian Journal of Economics, Canadian Economics Association, vol. 40(4), pages 1100-1117, November.
  7. Gallegos, Alberto & R├ęgibeau, Pierre, 2004. "Managed Trade, Trade Liberalization and Local Pollution," CEPR Discussion Papers 4491, C.E.P.R. Discussion Papers.
  8. Riveiro, Dolores, 2008. "Environmental policy and commercial policy: The strategic use of environmental regulation," Economic Modelling, Elsevier, vol. 25(6), pages 1183-1195, November.
  9. Mukherjee, Arijit & Pennings, Enrico, 2006. "Tariffs, licensing and market structure," European Economic Review, Elsevier, vol. 50(7), pages 1699-1707, October.
  10. Klaus Conrad, 2001. "Voluntary Environmental Agreements vs. Emission Taxes in Strategic Trade Models," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 19(4), pages 361-381, August.
  11. Rauscher, Michael, 1994. "On Ecological Dumping," Oxford Economic Papers, Oxford University Press, vol. 46(0), pages 822-40, Supplemen.
  12. Puller, Steven L., 2006. "The strategic use of innovation to influence regulatory standards," Journal of Environmental Economics and Management, Elsevier, vol. 52(3), pages 690-706, November.
  13. repec:ebl:ecbull:v:17:y:2006:i:5:p:1-9 is not listed on IDEAS
  14. Soham Baksi & Amrita Ray chaudhuri, 2009. "On trade liberalization and transboundary pollution," Economics Bulletin, AccessEcon, vol. 29(4), pages 2605-2612.
  15. Ulph, Alistair & Valentini, Laura, 2001. " Is Environmental Dumping Greater When Plants Are Footloose?," Scandinavian Journal of Economics, Wiley Blackwell, vol. 103(4), pages 673-88, December.
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