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Policy-Induced Environmental Technology Transfer

Author

Listed:
  • Takeshi Iida

    (Graduate School of Economics, Kobe University)

  • Kenji Takeuchi

    () (Graduate School of Economics, Kobe University)

Abstract

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 firm fs product decreases for higher environmental damage. On the other hand, import of environmentally efficient goods from the foreign country increases.

Suggested Citation

  • Takeshi Iida & Kenji Takeuchi, 2010. "Policy-Induced Environmental Technology Transfer," Discussion Papers 1008, Graduate School of Economics, Kobe University.
  • Handle: RePEc:koe:wpaper:1008
    as

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    File URL: http://www.econ.kobe-u.ac.jp/RePEc/koe/wpaper/2010/1008.pdf
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Environmental technology transfer; Free trade; Tariff protection;

    JEL classification:

    • D43 - Microeconomics - - Market Structure, Pricing, and Design - - - Oligopoly and Other Forms of Market Imperfection
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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