Environmental regulation and technology transfers

Takao Asano, Noriaki Matsushima

Research output: Contribution to journalArticle

4 Citations (Scopus)

Abstract

This paper analyzes the situation in which a national government introduces environmental regulations. Within the framework of an international duopoly with environmental regulations, an environmental tax imposed by the government in the home country can induce a foreign firm with advanced abatement technology to license it to a domestic firm without this technology. Furthermore, when the domestic firm's production technology is less efficient than that of the foreign firm, the foreign firm may freely reveal its technology to the domestic firm. These improvements through the voluntary transfer of technology imply that environmental regulations have positive impacts on innovation.

Original languageEnglish
Pages (from-to)889-904
Number of pages16
JournalCanadian Journal of Economics
Volume47
Issue number3
DOIs
Publication statusPublished - Aug 1 2014

Fingerprint

Foreign firms
Technology transfer
Domestic firms
Environmental technology
Environmental regulation
Government
Production technology
License
Transfer of technology
Environmental taxes
Abatement
Home country
Duopoly
Innovation

ASJC Scopus subject areas

  • Economics and Econometrics

Cite this

Environmental regulation and technology transfers. / Asano, Takao; Matsushima, Noriaki.

In: Canadian Journal of Economics, Vol. 47, No. 3, 01.08.2014, p. 889-904.

Research output: Contribution to journalArticle

Asano, Takao ; Matsushima, Noriaki. / Environmental regulation and technology transfers. In: Canadian Journal of Economics. 2014 ; Vol. 47, No. 3. pp. 889-904.
@article{e5d519f05b40441aac3f04fe0f1f08c4,
title = "Environmental regulation and technology transfers",
abstract = "This paper analyzes the situation in which a national government introduces environmental regulations. Within the framework of an international duopoly with environmental regulations, an environmental tax imposed by the government in the home country can induce a foreign firm with advanced abatement technology to license it to a domestic firm without this technology. Furthermore, when the domestic firm's production technology is less efficient than that of the foreign firm, the foreign firm may freely reveal its technology to the domestic firm. These improvements through the voluntary transfer of technology imply that environmental regulations have positive impacts on innovation.",
author = "Takao Asano and Noriaki Matsushima",
year = "2014",
month = "8",
day = "1",
doi = "10.1111/caje.12100",
language = "English",
volume = "47",
pages = "889--904",
journal = "Canadian Journal of Economics",
issn = "0008-4085",
publisher = "Wiley-Blackwell",
number = "3",

}

TY - JOUR

T1 - Environmental regulation and technology transfers

AU - Asano, Takao

AU - Matsushima, Noriaki

PY - 2014/8/1

Y1 - 2014/8/1

N2 - This paper analyzes the situation in which a national government introduces environmental regulations. Within the framework of an international duopoly with environmental regulations, an environmental tax imposed by the government in the home country can induce a foreign firm with advanced abatement technology to license it to a domestic firm without this technology. Furthermore, when the domestic firm's production technology is less efficient than that of the foreign firm, the foreign firm may freely reveal its technology to the domestic firm. These improvements through the voluntary transfer of technology imply that environmental regulations have positive impacts on innovation.

AB - This paper analyzes the situation in which a national government introduces environmental regulations. Within the framework of an international duopoly with environmental regulations, an environmental tax imposed by the government in the home country can induce a foreign firm with advanced abatement technology to license it to a domestic firm without this technology. Furthermore, when the domestic firm's production technology is less efficient than that of the foreign firm, the foreign firm may freely reveal its technology to the domestic firm. These improvements through the voluntary transfer of technology imply that environmental regulations have positive impacts on innovation.

UR - http://www.scopus.com/inward/record.url?scp=84918784117&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=84918784117&partnerID=8YFLogxK

U2 - 10.1111/caje.12100

DO - 10.1111/caje.12100

M3 - Article

VL - 47

SP - 889

EP - 904

JO - Canadian Journal of Economics

JF - Canadian Journal of Economics

SN - 0008-4085

IS - 3

ER -