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 …