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
Access to external full text or publisher's version may require subscription.
Full-text Version
Publisher’s Version
Language
English
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