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Policy-Induced Environmental Technology Transfer

Takeshi Iida and Kenji Takeuchi
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Takeshi Iida: Graduate School of Economics, Kobe University

No 1008, Discussion Papers from 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.

Keywords: Environmental technology transfer; Free trade; Tariff protection (search for similar items in EconPapers)
JEL-codes: D43 F13 L13 Q56 (search for similar items in EconPapers)
Pages: 37pages
Date: 2010-06
New Economics Papers: this item is included in nep-env, nep-int and nep-reg
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