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REPORTS - SPECIAL REPORTS |
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Methodological and Technological Issues in Technology Transfer |
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4.9.3 Minimum environmental performance standards
Transfers to developing countries of older technologies whose environmental performance
is lower than that of average technologies used in developed countries have been
called "technology dumping". Technology dumping is a controversial issue.
It often occurs because of lower technology costs relative to newer technologies
(including base costs, taxes, duties, and royalty payments). The literature distinguishes
two types of dumping: (a) an exporting country firm sets export prices lower than
prevailing prices in the exporting country (due to favourable or artificial conditions
prevalent through taxes and duties given by the exporting country); and (b) outdated
technologies are purchased by users in developing countries because they are unable
to afford new technologies (tax and duty structures may contribute to unaffordability
of newer technologies).
Although industries trading older technologies may themselves be satisfied by
the trade, environmental NGOs and governments have raised a variety of policy
issues. Should old technologies with harmful environmental effects be sold to
developing countries even if technologies meet the environmental standards of
the recipient country? On the other hand, if newer technologies are not affordable
to these countries and no financial assistance is available to them, are policies
which deny them access to these technologies unfair?
Some ways forward have been suggested. Chapter 4 of the
Habitat Agenda argues that "The international community should promote and
facilitate the transfer of technology and expertise ¼ through
seeking
to ensure that the process of technology transfer avoids the dumping of environmentally
unsound technologies on the recipients ¼." (UNHABITAT, 1996). There
are existing examples of mandatory and/or voluntary minimum performance standards
in developing countries. However, enforcing environmental standards requires some
type of certification process, which can become complicated (i.e., characterisation
of degree of energy efficiency). It would be much easier is to base standards
on some known characteristic such as age or size (see Box
4.7). There is clearly a role for government and international assistance
in setting and enforcing standards.
Box 4.7: Technology Import Standards in India |
India has recently announced a new import policy for second-hand technologies.
Under this policy, imports of technologies that are more than 10 years old
are prohibited. Technologies less than five years old can be imported at
standard rates of duty. Technologies that are between 5-10 years old are
decided on a case by case basis. The only criterium is the age of the technologies.
Environmental performance is not considered, partly because any technologies
will still have to meet existing environment standards for manufacturing
processes and equipment. This ignores the consideration that imports of
older manufactured products could consume energy inefficiently and result
in greater indirect environmental impacts (e.g., refrigerators, CFLs
with inferior phosphors, chokes, and motors). |
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