Technology transfer with transboundary pollution : a signalling approach

Research output: Journal PublicationsJournal Article (refereed)peer-review

6 Citations (Scopus)


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.
Original languageEnglish
Pages (from-to)953-980
Number of pages28
JournalCanadian Journal of Economics
Issue number3
Publication statusPublished - Aug 2014
Externally publishedYes

Bibliographical note

Financial support provided from a start‐up grant from Nanyang Technological University.

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