Premium
Tarifs douaniers et adoption de technologie propre quand il y a asymétrie de l'information.
Author(s) -
Ludema Rodney D.,
Takeno Taizo
Publication year - 2007
Publication title -
canadian journal of economics/revue canadienne d'économique
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.773
H-Index - 69
eISSN - 1540-5982
pISSN - 0008-4085
DOI - 10.1111/j.1365-2966.2007.00444.x
Subject(s) - protectionism , tariff , externality , economics , production (economics) , marginal cost , property rights , microeconomics , industrial organization , international economics , business
. This paper examines the effect of a tariff on the decision of a foreign monopolist to adopt ‘clean’ technology, which reduces the flow of a negative cross‐border externality. The clean technology increases the marginal cost of production relative to the dirty technology, but only the firm knows the extent of the increase. Under complete information, despite its protectionist motivation, the importing country's optimal tariff induces the firm to adopt the clean technology if and only if it is globally efficient to do so. Under incomplete information, this efficiency property is disrupted, and the firm biases its choice in favour of dirty technology. JEL classification: F13, F18