Technology transfer with transboundary pollution: A signalling approach
Fuhai Hong
Canadian Journal of Economics, 2014, vol. 47, issue 3, 953-980
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 NorthSouth 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.
JEL-codes: O33 Q54 (search for similar items in EconPapers)
Date: 2014
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