Technology transfer with transboundary pollution: A signalling approach |
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Authors: | Fuhai Hong |
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Institution: | Division of Economics, Nanyang Technological University |
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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. |
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Keywords: | O33 Q54 |
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