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Effects of Technology Transfers on the Provision of Public Goods

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  • Tae-Yeoun Lee

Abstract

In this paper, we examine the viability ofcooperative policies oriented to the resolution oftransboundary pollution problems using the theory ofprivate provision of public goods in a two-countrymodel. We analyze the effects on economic welfare ofvoluntary technological transfers oriented to reducingthe emission of pollutants. Our analysis shows that when the atmosphere istaken as a pure public goods, ``a strong paradox'' emerges:the advanced country, in spite of the transfer, seesits economic welfare improved while the developingcountry sees it worsen. Moreover, if both a technicaland an income transfer occur, this paradox mightnot be solved. Furthermore, ``a paradoxicalimprovement'' occurs when the advanced country does nottake any policy towards the environment but thedeveloping country does: an improvement in the levelof technology in the developing country allows for anexpansion of the level of utility in both countries.On the other hand, in the case where the atmosphere istaken as an impure public goods, when both countriespursue an abatement policy, the transfer of technologyleads to an improvement in welfare in bothcountries. Copyright Kluwer Academic Publishers 2001

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  • Tae-Yeoun Lee, 2001. "Effects of Technology Transfers on the Provision of Public Goods," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 18(2), pages 193-218, February.
    • Handle: RePEc:kap:enreec:v:18:y:2001:i:2:p:193-218
    DOI: 10.1023/A:1011131310523
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    References listed on IDEAS

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    1. John Stranlund, 1996. "On the strategic potential of technological aid in international environmental relations," Journal of Economics, Springer, vol. 64(1), pages 1-22, February.
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    8. James C. Murdoch & Tod Sandler & Keith Sargent, 1997. "A Tale of Two Collectives: Sulphur versus Nitrogen Oxides Emission Reduction in Europe," Economica, London School of Economics and Political Science, vol. 64(254), pages 281-301, May.
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    10. Marjit, Sugata, 1990. "On a non-cooperative theory of technology transfer," Economics Letters, Elsevier, vol. 33(3), pages 293-298, July.
    11. Niho, Yoshio, 1996. "Effects of an international income transfer on the global environmental quality," Japan and the World Economy, Elsevier, vol. 8(4), pages 401-410, December.
    12. Tahvonen Olli & Kaitala Veijo & Pohjola Matti, 1993. "A Finnish - Soviet Acid Rain Game: Noncooperative Equilibria, Cost Efficiency, and Sulfur Agreements," Journal of Environmental Economics and Management, Elsevier, vol. 24(1), pages 87-100, January.
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    Cited by:

    1. Nagase, Yoko & Silva, Emilson C.D., 2007. "Acid rain in China and Japan: A game-theoretic analysis," Regional Science and Urban Economics, Elsevier, vol. 37(1), pages 100-120, January.
    2. Matthieu Glachant & Julie Ing & Jean Philippe Nicolai, 2017. "The Incentives for North-South Transfer of Climate-Mitigation Technologies with Trade in Polluting Goods," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 66(3), pages 435-456, March.
    3. Gunter Stephan & Georg M ller-F rstenberger, 2012. "Global Warming, Technology Transfer and Trade in Carbon Energy: Challenge or Threat?," Diskussionsschriften dp1206, Universitaet Bern, Departement Volkswirtschaft.
    4. Hattori, Keisuke, 2007. "Policy and Product Differentiations Encourage the International Transfer of Environmental Technologies," MPRA Paper 6334, University Library of Munich, Germany, revised 20 Sep 2007.
    5. Gunter Stephan & Georg Müller-Fürstenberger, 2015. "Global Warming, Technological Change and Trade in Carbon Energy: Challenge or Threat?," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 62(4), pages 791-809, December.

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