01_McAleer - Modelling the Asymmetric Volatility of Anti-pollution Technology Patents Registered in the USA Felix Chana Dora Marinovab Michael

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Modelling the Asymmetric Volatility of Anti-pollution Technology Patents Registered in the USA Felix Chan a , Dora Marinova b , Michael McAleer a a Department of Economics, University of Western Australia ([email protected]) b Institute for Sustainability and Technology Policy, Murdoch University Abstract: The paper analyses the asymmetric volatility of patents related to pollution prevention and abatement (that is, anti-pollution) technologies registered in the USA. Ecological and pollution prevention technology patents have increased steadily over time, with the 1990's having been a period of intensive patenting of technologies related to the environment. The time-varying nature of the volatility of anti-pollution technology patents registered in the USA is examined using monthly data from the US Patent and Trademark Office for the period January 1975 to December 1999. Alternative symmetric and asymmetric volatility models, such as GARCH, GJR and EGARCH, are estimated and tested against each other. Keywords : Anti-pollution patents, trends, volatility, GARCH, GJR, EGARCH, asymmetry, nested models, non- nested models. 1. INTRODUCTION Since the Industrial Revolution in the 18 th Century, technology has dominated the economic, social and environmental fabric of society. From its earliest days, industrial development was associated with pollution. For example, smoke, fumes and fog-laden air can be seen clearly in the beautiful city landscapes painted by impressionists who depicted images directly from nature. The general tones, effects and vivid colours in paintings such as Claude Monet’s “The Tames at Westminster” (painted in 1871), Georges Seurat’s neo- impressionist “Bathing at Asnières” (1983-84, see Figure 1) and “Entrance to the Port of Honfleur” (1886), or Camille Pissaro’s “Pont Neuf – A Winter Morning” (painted near his death in 1903), show that pollution has long left its ominous mark on the ecological environment. Only in recent decades, however, has the serious environmental damage caused by pollution been recognised. Figure 1. George Seurat: Bathing at Asnières (Une Bagnade, Asnières), 1883-84 Billions of tons of carbon and other harmful elements produced through the burning of fossil fuels are added to the earth’s atmosphere each year (Dunn and Peterson, 2001), with the emission of CO 2 alone totalling more than 22.6 billions in 1996 (World Bank, 2001). This enormous pollution has caused global warming and climate change, and posed major threats to the inhabitants of the planet. Major expectations for dealing with the impact of pollution have been imposed on both human creativity and the development of technologies which can prevent or abate the problem. For purposes of this paper, “anti-pollution technologies” incorporate the range of technical solutions to the problem of pollution. The paper examines the trends and volatilities in the patenting of anti-pollution technologies in the USA, the world’s largest and technologically most advanced market, using monthly
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 02/28/2010 for the course ECO 211 taught by Professor Gilo during the Spring '10 term at Young Harris.

Page1 / 6

01_McAleer - Modelling the Asymmetric Volatility of Anti-pollution Technology Patents Registered in the USA Felix Chana Dora Marinovab Michael

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online