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International and Intergenerational Environmental Externalities

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  • John, A Andrew
  • Pecchenino, Rowena A

Abstract

The authors examine a world in which policymakers' actions in a given country at a given time have long-lived effects on a common resource: the global environment. They consider the first best in which long-lived planners behave cooperatively, then examine the allocation of resources when there is noncooperation across countries, across time, or both. Finally the authors analyze the dynamic behavior of the economy along balanced growth paths. It is found that, while long-lived international institutions are necessary to internalize all externalities, cooperation at a point in time may be harmful to future generations. Copyright 1997 by The editors of the Scandinavian Journal of Economics.

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Bibliographic Info

Article provided by Wiley Blackwell in its journal Scandinavian Journal of Economics.

Volume (Year): 99 (1997)
Issue (Month): 3 (September)
Pages: 371-87

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Handle: RePEc:bla:scandj:v:99:y:1997:i:3:p:371-87

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Web page: http://onlinelibrary.wiley.com/journal/10.1111/(ISSN)1467-9442

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Cited by:
  1. Lecocq, Franck & Hourcade, Jean-Charles, 2003. "Equitable provision of long-term public goods: the role of negotiation mandates," Policy Research Working Paper Series 3180, The World Bank.
  2. Alberto Ansuategi & Marta Escapa, 2004. "Is international cooperation on climate change good for the environment?," Economics Bulletin, AccessEcon, vol. 17(7), pages 1-11.
  3. Akihiko Yanase, 2009. "Global environment and dynamic games of environmental policy in an international duopoly," Journal of Economics, Springer, vol. 97(2), pages 121-140, June.
  4. Escapa García, Marta & Ansuategui Cobo, José Alberto & Pérez, Azucena, 2003. "International and Intergenerational Dimensions of Climate Change: North-South Cooperation in an Overlapping Generations Framework," IKERLANAK 2003-06, Universidad del País Vasco - Departamento de Fundamentos del Análisis Económico I.
  5. repec:hal:cesptp:halshs-00089913 is not listed on IDEAS
  6. repec:ipg:wpaper:7 is not listed on IDEAS
  7. Hirazawa, Makoto & Saito, Koichi & Yakita, Akira, 2011. "Effects of international sharing of pollution abatement burdens on income inequality among countries," Journal of Economic Dynamics and Control, Elsevier, vol. 35(10), pages 1615-1625, October.
  8. repec:ebl:ecbull:v:17:y:2004:i:7:p:1-11 is not listed on IDEAS
  9. Ansuategi, Alberto & Escapa, Marta, 2002. "Economic growth and greenhouse gas emissions," Ecological Economics, Elsevier, vol. 40(1), pages 23-37, January.
  10. Akihiko Yanase, 2005. "Pollution Control in Open Economies: Implications of Within-period Interactions for Dynamic Game Equilibrium," Journal of Economics, Springer, vol. 84(3), pages 277-311, 05.
  11. Mireille Chiroleu-Assouline & Mouez Fodha, 2005. "Double Dividend with Involuntary Unemployment: Efficiency and Intergenerational Equity," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 31(4), pages 389-403, 08.
  12. Economides, George & Miaouli, Natasha, 2006. "Federal transfers, environmental policy and economic growth," Journal of Macroeconomics, Elsevier, vol. 28(4), pages 680-699, December.

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