How Does it Matter to the Economy and Atmosphere in India if Production Frontier of Emission-Intensive Sectors Changes?

Abstract

The importance of technology transfer has been acknowledged at the United Nations Framework Convention on Climate Change (UNFCCC) in the year 2000. However, very few countries like Mexico and Philippines have done some analysis on this issue. Hence, this is a pioneer study for Indian economy. This study has adopted input–output (IO) model to simulate impact of technology transfer from relatively developed economy on India’s gross domestic product (GDP), households’ income, employment, greenhouse gas (GHG) emission and acidification. The most efficient technologies have been identified after analysing the trade-off between economic growth and GHG emissions. Result argues that it is imperative to adopt Japanese technologies of power supply, gas and water supply to unfetter opportunities of high employment, GDP growth and mitigate GHG emissions and acidification. But in the wake of border carbon tax, China’s technology for food and beverages, France’s technology for chemical products along with Japan’s technology for basic metal can be adopted to achieve comparative advantage in the world market.