Keywords: environmental quality, sustainable development, vintage technologies, sustainability, polluting technologies, environmental pollution, economic development, developing countries
Polluting Technologies and Economic Development
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 USA and Europe to developing countries supports our theoretical findings.