Polluting Technologies and Sustainable Economic Development
CORE Discussion Paper No. 2006/52
28 Pages Posted: 23 Aug 2006
Date Written: June 2006
Abstract
We study how the import of older and more polluting technologies alters the relationship between output and environmental quality in developing countries within a vintage capital framework. Our results show that old technologies prolong the period until which pollution may eventually decrease and cause this turning point to be reached at a higher level of pollution. An empirical analysis using export data of vintage technologies from the US and Europe to developing countries supports our theoretical findings.
Keywords: Environmental quality, sustainable development, vintage technologies
JEL Classification: O13, O33, Q01, Q56
Suggested Citation: Suggested Citation
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