Title

Technology transfer with transboundary pollution : a signalling approach

Document Type

Journal article

Source Publication

Canadian Journal of Economics

Publication Date

8-2014

Volume

47

Issue

3

First Page

953

Last Page

980

Publisher

Wiley-Blackwell Publishing, Inc.

Abstract

There are increasing complaints from the developing world that developed countries seem reluctant to transfer green technology, despite its benefits in helping to solve the climate problem. Identifying a signalling effect of technology transfer that was neglected by the previous literature, this paper offers a rationale for this reluctance in a North-South model with transboundary pollution. In a benchmark case with complete information, the North makes complete technology transfer, leading to a Pareto improvement. However, if the North's valuation on climate damage is its private information, the North does not completely transfer the technology in “almost all” of the equilibria.

DOI

10.1111/caje.12102

Print ISSN

00084085

E-ISSN

15405982

Funding Information

Financillay supported by a start-up grant from Nanyang Technological University.

Publisher Statement

Copyright © Canadian Economics Association

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Full-text Version

Publisher’s Version

Recommended Citation

Hong, F. (2014). Technology transfer with transboundary pollution: A signalling approach. Canadian Journal of Economics, 47(3), 953-980. doi: 10.1111/caje.12102