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Environmental Protection and the Private Provision of International Public Goods

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  • MARTIN ALTEMEYER-BARTSCHER
  • DIRK T. G. RÜBBELKE
  • EYTAN SHESHINSKI

Abstract

International environmental protection like the combat of global warming exhibits properties of public goods. In the international arena, no coercive authority exists that can enforce measures to overcome free-rider incentives. Therefore decentralized negotiations between individual regions serve as an approach to pursue efficient international environmental protection. We propose a scheme which is based on the ideas of Coasean negotiations and Pigouvian taxes. The negotiating entities offer side-payments to counterparts in order to influence their taxation of polluting consumption. Side-payments, in turn, are self-financed by means of externality-correcting taxes. As we show, a Pareto-efficient outcome can be attained. Copyright (c) The London School of Economics and Political Science 2009.

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Bibliographic Info

Article provided by London School of Economics and Political Science in its journal Economica.

Volume (Year): 77 (2010)
Issue (Month): 308 (October)
Pages: 775-784

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Handle: RePEc:bla:econom:v:77:y:2010:i:308:p:775-784

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Cited by:
  1. Kimiko Terai, 2012. "Financial Mechanism and Enforceability of International Environmental Agreements," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 53(2), pages 297-308, October.
  2. Pittel, Karen & Rübbelke, Dirk T. G., 2012. "Transitions in the negotiations on climate change: From prisoner’s dilemma to chicken and beyond," Munich Reprints in Economics 19343, University of Munich, Department of Economics.
  3. Martin Altemeyer-Bartscher & Anil Markandya & Dirk T.G. Rübbelke, 2011. "The Private Provision of International Impure Public Goods: the Case of Climate Policy," Working Papers 2011-09, BC3.
  4. Boadway, Robin & Song, Zhen & Tremblay, Jean-François, 2013. "Non-cooperative pollution control in an inter-jurisdictional setting," Regional Science and Urban Economics, Elsevier, vol. 43(5), pages 783-796.
  5. Benjamin Jones & Michael Keen & Jon Strand, 2013. "Fiscal implications of climate change," International Tax and Public Finance, Springer, vol. 20(1), pages 29-70, February.
  6. Boadway, Robin & Song, Zhen & Tremblay, Jean-François, 2010. "The Efficiency of Voluntary Pollution Abatement when Countries can Commit," CCES Discussion Paper Series 28, Center for Research on Contemporary Economic Systems, Graduate School of Economics, Hitotsubashi University.
  7. Olga Kiuila, 2011. "Interactions between trade and environmental policies in the Czech economy," Working Papers 2011-16, Faculty of Economic Sciences, University of Warsaw.

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