CROSS‐COUNTRY TECHNOLOGY TRANSFER AND POLITICALLY DRIVEN INTERNATIONAL AGREEMENTS FOR ENVIRONMENTAL STANDARDS |
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Authors: | Uk Hwang Jinkwon Lee |
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Institution: | 1. School of Economics and Trade, Kyungpook National University, Korea;2. Department of Economics, Kyonggi University, Korea |
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Abstract: | Grossman and Helpman highlighted a political framework to internalize inefficiency incurred due to unilateral trade policy implementation by sovereign countries. This paper extensively adopts their framework to explore the effects of special interest politics on governments under negotiation to forge international environmental standards to control global emission. Particular attention is given to a case in which negotiation is driven by transferring the abatement technology. Within a specific factor model of international trade, improving the abatement efficiency through technology transfer can give the most mutually beneficial outcome, achieving the lowest level of global pollution compared to other political benchmarks. |
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Keywords: | emission abatement technology transfer environmental standards interest group politics international agreement two‐level game D70 F18 Q58 |
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