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Industrial technological progress, technology spillover, and the environment in a dual agricultural economy

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  • Yunyun Wu
  • Xiaochun Li

Abstract

Developing nations typically prioritize economic growth. Thus, industrial technological progress frequently leads to production expansion and subsequent environmental degradation. This paper, however, proposes that in a dual agricultural economy, the progress in industrial production technology does not necessarily degrade the environment when considering technology spillover. Utilizing a general equilibrium model, we conclude that, at the beginning of modern agricultural development, increasing technology spillover rate adversely affects the environment and social welfare. Yet, after the popularization of modern agriculture, increasing this rate can enhance environmental and welfare conditions. Under specific conditions, industrial technological progress might promote environmental and welfare benefits.

Suggested Citation

  • Yunyun Wu & Xiaochun Li, 2024. "Industrial technological progress, technology spillover, and the environment in a dual agricultural economy," International Journal of Economic Theory, The International Society for Economic Theory, vol. 20(2), pages 243-266, June.
    • Handle: RePEc:bla:ijethy:v:20:y:2024:i:2:p:243-266
    DOI: 10.1111/ijet.12398
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