Policy-Induced Environmental Technology Transfer

We investigate how environmental and trade policies affect the transfer of environmental technology in a two-country model with global pollution. By comparing free trade and tariff policy without commitment, the following results are obtained. First, the existence of an environmental policy in a local country induces technology transfer from a foreign country. Second, there is a possibility that free trade is preferable to a tariff policy for both countries even though free trade lowers the environmental tax rate. Third, the quantity of the local firmfs product decreases for higher environmental damage. On the other hand, import of environmentally efficient goods from the foreign country increases.Environmental technology transfer; Free trade; Tariff protection

Environmental Technology Transfer via Free Trade

This paper considers a model of international duopoly with global pollution to investigate the impact of tariff policy and licensing contracts on environmental technology transfer. Our main finding is that free trade is not always preferable. When the protection of intellectual property rights (IPR) is within a certain range, there is a possibility that the total world welfare is higher under a positive tariff rate than under a zero tariff rate. This implies that the protection of IPR being beyond the range is a prerequisite for the justification of free trade.Environmental technology transfer, Free trade, Tariff protection, Licensing

Consumer Preferences for Less Packaging: A Stated Preference Study

This study estimates the willingness-to-pay (WTP) for packaging with less material by using contingent valuation. We found that people who care about the environmental friendliness of a product, who have a positive perception of less packaging, and who live in a municipality implementing unit-based pricing of waste have a higher WTP. Use of economic instruments potentially affects the purchase of products with reduced packaging. However, when unit-based pricing is combined with plastic separation for recycling, it reduces the WTP. This suggests the possibility that the effect of economic instruments on source reduction of waste is weakened by the recycling policy.Less packaging, Contingent valuation, Unit-based pricing

Environmental Technology Transfer via Free Trade

This paper considers a model of international duopoly with global pollution to investigate the impact of tariff policy and licensing contracts on environmental technology transfer. Our main finding is that free trade is not always preferable.When the protection of intellectual property rights (IPR) is within a certain range, there is a possibility that the total world welfare is higher under a positive tariff rate than under a zero tariff rate. This implies that the protection of IPR beyond the range is a prerequisite for the justification of free trade.We also show how developing countries are induced to sign a licensing contract.Even if the licensing does not directly improve the competitiveness of the firm in the developing country, raising the tariff rate can increase the revenue of the country. In contrast, when there is no licensing agreement, the local government sets a lower tariff rate and diffuses the products of foreign firms,because the products of local firms are associated with pollution.Environmental technology transfer; Free trade; Tariff protection, Licensing

Are SRI Funds More Resilient towards the Global Financial Crisis?

This paper compares the resilience of Socially Responsible Investment (SRI) funds with that of conventional funds towards the global financial crisis by using an event study methodology. Taking the bankruptcy of Lehman Brothers as the particular event, we estimated the average cumulative abnormal returns of both SRI funds and conventional funds. Our results show that SRI funds are more resilient to such a shock. Similar results are obtained by an estimation with a market model that accounts for ARCH effects.SRI, Event study, Financial crisis

Does Japan import less than it should?

Japan's continuing large current account surpluses have promoted a series of investigators to examine the volume and the structure of the goods that Japan imports. The usual charge is that Japan's level of manufactured imports is too low and that it is low because Japan has erected a wall of trade barriers that limits access by foreign suppliers of manufactured goods. Recent studies have looked at this question to see if Japan's overall imports are lower than they should be, and specifically if Japan imports fewer manufactures than other industrial countries. This paper presents a review of the econometric literature and these give diverse results. Additionally, if Japan does import a lower volume of manufactures, why is that so? Is it because of trade and tariff barriers, the Japanese marketing system, or the tastes of Japanese consumers? None of the studies resolved these questions.Economic Theory&Research,TF054105-DONOR FUNDED OPERATION ADMINISTRATION FEE INCOME AND EXPENSE ACCOUNT,Trade Policy,Common Carriers Industry,Environmental Economics&Policies

Does Japanese direct foreign investment promote Japanese imports from developing countries?

Japanese direct foreign investment (DFI) in developing countries has been export market oriented. Exports were the dominant sales destinations for the affiliates in the primary industries. In manufacturing, although local markets were the dominant sales destinations of the Japanese affiliates, the share of exports increased from 26 percent in 1972 to 42 percent in 1986. For manufacturing as a whole, the share increased from 15 percent in 1980-83 to more than 20 percent in 1986. For many types of machinery production, Japanese affiliates in Asia seem to have become established as a base for exporting to the Japanese market through intrafirm trade. In some other manufacturing subsectors, Japanese affiliates have directed their sales efforts to other overseas destinations, gradually reducing the share going to the local market.Environmental Economics&Policies,Water Resources Assessment,Mining&Extractive Industry (Non-Energy),Energy Trade,Water Conservation

Another scope test on nonuse value of the Shimanto river, Japan

In Japan, dramatic decrease in population and tax revenues of local areas have made the preservation of precious local environmental resources difficult. Although people who live in urban areas have a general consciousness toward preservation of such resources, the amount they are willing to pay and how this consciousness can be realized remain vague. The aims of this study are to estimate such willingness to pay (WTP), to consider the applicability of the contingent valuation method, and to suggest a funding scheme for conservation. Estimation is focused on the Shimanto river, famous as the last clear stream of Japan. Consideration includes a comparison of non-response rate between questionnaire formats and a test of scope insensitivity. Comparison between the private goods format and the referendum format is noteworthy because most Japanese do not have the experience of participating referendum voting on a specific issue. The test of scope insensitivity shows that mean WTP for water quality improvement of the entirety of the river is significantly larger than that of only part. However, weak sensitivity calls for careful benefit transfer. Finally, the paper examines the significance of WTP from a policy perspective. To actualize the will of residents of urban centers for conservation of local environmental assets, it is necessary to establish an institution that can collect the cost for conservation directly from beneficiaries