Technology Transfer with Transboundary Pollution: A Signaling Approach

Abstract:     
There are increasing complaints from developing countries that the developed countries seem to be reluctant to transfer green technology, despite its salient benefits in helping solve the climate problem. Identifying a signaling 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. Multiple equilibria leading to very different outcomes coexist.

Number of Pages in PDF File: 27

Keywords: Asymmetric Information, Climate Change, Developed Countries, Emission Abatement, Technology Transfer

JEL Classification: D82, O33, Q54

working papers series