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Flexibility of the national policy framework and international policy co‐ordination are two key factors that affect international transfer of environmental technologies. In this chapter, empirical evidence is provided that indicates that the degree of flexibility
of national environmental policy regimes has a positive effect on technology transfer. Flexibility ensures that markets are not fragmented across different countries as would be the case with prescriptive regimes. In the second case, we also examine whether adherence to
a series of international agreements on reducing SOX and NOX emissions has induced the transfer of technologies between signatory countries. Supporting descriptive and econometric evidence to this end is provided.