Polluting technologies and sustainable economic development

Abstract

Bertinelli L, Strobl E, Zou B. Polluting technologies and sustainable economic development. Working Papers. Institute of Mathematical Economics. Vol 379. Bielefeld: Universität Bielefeld; 2006.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