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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.

Suggested Citation

  • John, A Andrew & Pecchenino, Rowena A, 1997. " International and Intergenerational Environmental Externalities," Scandinavian Journal of Economics, Wiley Blackwell, vol. 99(3), pages 371-387, September.
  • Handle: RePEc:bla:scandj:v:99:y:1997:i:3:p:371-87
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    Citations

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    Cited by:

    1. Todd Sandler, 2009. "Intergenerational Public Goods: Transnational Considerations," Scottish Journal of Political Economy, Scottish Economic Society, vol. 56(3), pages 353-370, July.
    2. 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, May.
    3. John, A. & Pecchenino, R. & Schimmelpfennig, D. & Schreft, S., 1995. "Short-lived agents and the long-lived environment," Journal of Public Economics, Elsevier, vol. 58(1), pages 127-141, September.
    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:ebl:ecbull:v:17:y:2004:i:7:p:1-11 is not listed on IDEAS
    6. Jean Charles Hourcade & Franck Lecocq, 2003. "Equitable Provision of Long-Term Public GoodsThe role of Negotiation Mandates," Working Papers halshs-00000968, HAL.
    7. 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.
    8. 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.
    9. Shintaro Nakagawa & Masayuki Sato & Rintaro Yamaguchi, 2014. "Environment, growth, and technological change in a two-country overlapping-generations model," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 16(4), pages 397-443, October.
    10. repec:ipg:wpaper:7 is not listed on IDEAS
    11. Mireille Chiroleu-Assouline & Mouez Fodha, 2005. "Double Dividend with Involuntary Unemployment: Efficiency and Intergenerational Equity," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 31(4), pages 389-403, August.
    12. Alberto Ansuategi & Marta Escapa, 2004. "Is international cooperation on climate change good for the environment?," Economics Bulletin, AccessEcon, vol. 17(7), pages 1-11.
    13. Economides, George & Miaouli, Natasha, 2006. "Federal transfers, environmental policy and economic growth," Journal of Macroeconomics, Elsevier, vol. 28(4), pages 680-699, December.
    14. 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.
    15. Ansuategi, Alberto & Escapa, Marta, 2002. "Economic growth and greenhouse gas emissions," Ecological Economics, Elsevier, vol. 40(1), pages 23-37, January.
    16. Ansuategui Cobo, José Alberto & Escapa García, Marta & 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.

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