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Transboundary Pollution and Welfare Effects of Technology Transfer

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  • Yasuhiro Takarada

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Abstract

The purpose of this paper is to examine the welfare effects of pollution abatement technology transfer in a two-good two-country model with transboundary pollution. In each country, one industry emits pollution as a joint product of output and the sum of domestic and cross-border pollution decreases productivity of the other industry. Then, we show that technology transfer can bene?t the recipient country regardless of the level of cross-border pollution. Moreover, the donor country gains from technology transfer if all pollution is transboundary but it may harm the donor country with out cross-border pollution. We demonstrate that the effects of technology transfer depend on the trade pattern as well as cross-border pollution. Keywords: Environment; Pollution; Technology transfer; Pareto-improving transfer JEL classi?cation: D62; F18; O39

Suggested Citation

  • Yasuhiro Takarada, 2004. "Transboundary Pollution and Welfare Effects of Technology Transfer," ERSA conference papers ersa04p203, European Regional Science Association.
  • Handle: RePEc:wiw:wiwrsa:ersa04p203
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    References listed on IDEAS

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    1. Copeland, Brian R. & Taylor, M. Scott, 1999. "Trade, spatial separation, and the environment," Journal of International Economics, Elsevier, vol. 47(1), pages 137-168, February.
    2. Benarroch, Michael & Thille, Henry, 2001. "Transboundary pollution and the gains from trade," Journal of International Economics, Elsevier, vol. 55(1), pages 139-159, October.
    3. Wolfgang Buchholz & Kai Konrad, 1994. "Global environmental problems and the strategic choice of technology," Journal of Economics, Springer, vol. 60(3), pages 299-321, October.
    4. John Stranlund, 1996. "On the strategic potential of technological aid in international environmental relations," Journal of Economics, Springer, vol. 64(1), pages 1-22, February.
    5. Takumi Naito, 2003. "Pareto-improving Untied Aid with Environmental Externalities," Journal of Economics, Springer, vol. 80(2), pages 161-169, October.
    6. Unteroberdoerster, Olaf, 2001. "Trade and Transboundary Pollution: Spatial Separation Reconsidered," Journal of Environmental Economics and Management, Elsevier, vol. 41(3), pages 269-285, May.
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    More about this item

    JEL classification:

    • D62 - Microeconomics - - Welfare Economics - - - Externalities
    • F18 - International Economics - - Trade - - - Trade and Environment
    • O39 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Other

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