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Regional agglomeration and transfer of pollution reduction technology under the presence of transboundary pollution
Author(s) -
Naito Tohru
Publication year - 2010
Publication title -
regional science policy and practice
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.342
H-Index - 8
ISSN - 1757-7802
DOI - 10.1111/j.1757-7802.2010.01024.x
Subject(s) - pollution , economies of agglomeration , reduction (mathematics) , natural resource economics , environmental science , business , environmental protection , economic geography , economics , economic growth , mathematics , ecology , geometry , biology
The purpose of this paper is to present analyses of the effect of technology transfer to reduce pollution on regional agglomeration. The analyses extend the model presented by Ottaviano, Tabuchi, and Thisse by introducing a gap of reduction technology between regions and by assuming transboundary pollution. It is insufficient to analyse transboundary pollution problems such as acid rain within only one region. To reach an adequate solution, this problem must be considered within a sufficiently detailed economic system because various economic activities produce pollution. Recently, various factors as well as pollution have become mobile among regions because of disappearance of economic borders. Therefore, we consider environmental problems using a core–periphery model that is solvable analytically and considering the effect of pollution reduction technology transfer on regional agglomeration. The results obtained through analyses using this model are as described herein. First, it is possible to relax agglomeration through technological transfer of pollution reduction when the transportation cost of manufactured goods is high. Second, technological transfer of pollution reduction does not affect regional agglomeration when the rate of transitory pollution between regions is high.