Environmental And Economic Analysis Of International Environmental Technology Transfer

From the starting point of what the factors that can influence international environmentaltechnology transfer are and how these various factors effect technology transfer, we build atwo-country Cournot competition model. By backward induction, feedback Nash equilibriumsof different regulation policies are obtained.The effect of carbon emission permit trade and environment tax on internationalenvironmental technology transfer are analyzed and compared.The determination of cooperatequantity, choice of environmental&trade regulation measures and whether countries intend totransfer environmental technologies are problems we focused in this essay. How the tradepolicy effect environmental technology transfer and eco-dumping are also discussed.Cooperation or not can play an important role on the regulation and transfer. We conclude thatProduct differentiation, domestic product price elasticity of demand and degree oftransboundary pollution can increase international environmental technology transfer throughenhancing the welfare of donor country. The recipient country’s welfare has always beenpositive in our model.Under the circumstances of free trade and positive transfer cost, host coorperations hasincentives to receive environmental techonology transfer contrats; governments may raise tariffto protect cooperations when technology transfer; when there is not transfer governments willlower tariff level to increase technology-related import goods.Cooperation environment tax ishigher than those under uliteral situation when transboundary pollution is severe or demandcoefficient is small.