IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this article or follow this journal

Impure public technologies and environmental policy

  • Anil Markandya
  • Dirk T.G. Rübbelke

Purpose – The purpose of this paper is to analyse the role of transfers as a means to overcome inefficiencies in the provision of impure public goods. The paper employs the example of international conditional transfers targeted to overcome suboptimal low climate protection efforts by influencing the abatement technology choice of countries. Design/methodology/approach – The paper applies the Lancastrian characteristics approach and conduct numerical simulations for divergent degrees of substitutability between different characteristics. The paper takes into account climate-protection benefits (global pollution reduction) as well as co-benefits (local pollution reduction) of climate protection activities. Findings – The analysis shows that individual country solution can be improved upon by making transfers from the richer countries to the poorer ones, if the latter have a lower relative preference for the global public goods (global pollution reduction) than the former. The magnitudes of such transfers will depend on the relative benefits of the global and local pollutants in the two countries. The authors also investigated the dependency of the potential for transfers on the degree of complementarity between global and local pollution characteristics. With a “Cobb Douglas” type of function used here the elasticity of substitution between the two is of course one. With a zero degree of substitutability the adjustment to a lower level of the global public good in fact starts to happen at a lower per capita income level. The scope for conditional transfers is still there, although the gains can be slightly smaller than when adjustment on the “global pollution characteristic – local pollution characteristic” margin is possible. Originality/value – This paper is a contribution to the literature on impure public goods. In particular, the authors examine the role of international transfers in obtaining an efficient global allocation of resources in the presence of such public goods. To date the analysis of impure public goods has not examined the case of a continuum of technologies where an efficient solution requires conditional transfers, i.e. payments from one country to another to undertake a different supply of global and local public goods than the second country would wish to undertake. JEL classification: H87, Q54

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://www.emeraldinsight.com/journals.htm?issn=0144-3585&volume=39&issue=2&articleid=17031515&show=abstract
Download Restriction: Cannot be freely downloaded

As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

Article provided by Emerald Group Publishing in its journal Journal of Economic Studies.

Volume (Year): 39 (2012)
Issue (Month): 2 (May)
Pages: 128-143

as
in new window

Handle: RePEc:eme:jespps:v:39:y:2012:i:2:p:128-143
Contact details of provider: Web page: http://www.emeraldinsight.com

Order Information: Postal: Emerald Group Publishing, Howard House, Wagon Lane, Bingley, BD16 1WA, UK
Web: http://www.emeraldinsight.com/jes.htm Email:


References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

as in new window
  1. Dubin, Jeffrey A. & Navarro, Peter., 1987. "How Markets for Impure Public Goods Organize: The Case of Household Refuse Collection," Working Papers 633, California Institute of Technology, Division of the Humanities and Social Sciences.
  2. Kelvin J. Lancaster, 1966. "A New Approach to Consumer Theory," Journal of Political Economy, University of Chicago Press, vol. 74, pages 132.
  3. Chakravorty, Ujjayant & Roumasset, James & Tse, Kinping, 1997. "Endogenous Substitution among Energy Resources and Global Warming," Journal of Political Economy, University of Chicago Press, vol. 105(6), pages 1201-34, December.
  4. Andreoni, James, 1989. "Giving with Impure Altruism: Applications to Charity and Ricardian Equivalence," Journal of Political Economy, University of Chicago Press, vol. 97(6), pages 1447-58, December.
  5. Cornes, Richard & Sandler, Todd, 1994. "The comparative static properties of the impure public good model," Journal of Public Economics, Elsevier, vol. 54(3), pages 403-421, July.
  6. Rubbelke, Dirk T. G., 2003. "An analysis of differing abatement incentives," Resource and Energy Economics, Elsevier, vol. 25(3), pages 269-294, August.
  7. Matthew J. Kotchen, 2003. "Impure Public Goods and the Comparative Statics of Environmentally Friendly Consumption," Department of Economics Working Papers 2003-06, Department of Economics, Williams College.
  8. Bergstrom, Ted, 1989. "Love and Spaghetti, the Opportunity Cost of Virtue," Journal of Economic Perspectives, American Economic Association, vol. 3(2), pages 165-73, Spring.
  9. Burtraw, Dallas & Krupnick, Alan & Palmer, Karen & Paul, Anthony & Toman, Michael & Bloyd, Cary, 2003. "Ancillary benefits of reduced air pollution in the US from moderate greenhouse gas mitigation policies in the electricity sector," Journal of Environmental Economics and Management, Elsevier, vol. 45(3), pages 650-673, May.
  10. Pittel, Karen & Rübbelke, Dirk T. G., 2006. "What directs a terrorist?," Munich Reprints in Economics 19351, University of Munich, Department of Economics.
  11. Vicary, Simon, 1997. "Joint production and the private provision of public goods," Journal of Public Economics, Elsevier, vol. 63(3), pages 429-445, February.
  12. Eskeland, Gunnar S. & Jian Xie, 1998. "Acting globally while thinking locally : is the global environment protected by transport emission control programs?," Policy Research Working Paper Series 1975, The World Bank.
  13. John Posnett & Todd Sandler, 1986. "Joint Supply and the Finance of Charitable Activity," Public Finance Review, , vol. 14(2), pages 209-222, April.
  14. Matthew J. Kotchen, 2003. "Green Markets and Private Provision of Public Goods," Department of Economics Working Papers 2003-05, Department of Economics, Williams College.
  15. Sandler, Todd & Murdoch, James C, 1990. "Nash-Cournot or Lindahl Behavior? An Empirical Test for the NATO Allies," The Quarterly Journal of Economics, MIT Press, vol. 105(4), pages 875-94, November.
  16. Ihori, Toshihiro, 1996. "International public goods and contribution productivity differentials," Journal of Public Economics, Elsevier, vol. 61(1), pages 139-154, July.
  17. Eytan Sheshinski, 2002. "On Atmosphere Externality and Corrective Taxes," Discussion Paper Series dp328, The Federmann Center for the Study of Rationality, the Hebrew University, Jerusalem.
  18. Kotchen, Matthew J., 2007. "Equilibrium existence and uniqueness in impure public good models," Economics Letters, Elsevier, vol. 97(2), pages 91-96, November.
  19. Matthew J. Kotchen & Michael R. Moore, 2004. "Private Provision of Environmental Public Goods: Household Participation in Green-Electricity Programs," Department of Economics Working Papers 2004-07, Department of Economics, Williams College.
  20. Richard C. Cornes & Emilson C. D. Silva, 2003. "Public Good Mix in a Federation with Incomplete Information," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 5(2), pages 381-397, 04.
  21. Andreoni, James, 1990. "Impure Altruism and Donations to Public Goods: A Theory of Warm-Glow Giving?," Economic Journal, Royal Economic Society, vol. 100(401), pages 464-77, June.
  22. Keith Hartley & Todd Sandler, 2001. "Economics of Alliances: The Lessons for Collective Action," Journal of Economic Literature, American Economic Association, vol. 39(3), pages 869-896, September.
  23. Richard Cornes & Juni-ichi Itaya, 2004. "Models With Two Or More Public Goods," Department of Economics - Working Papers Series 896, The University of Melbourne.
  24. Costantini, Valeria & Gracceva, Francesco & Markandya, Anil & Vicini, Giorgio, 2007. "Security of energy supply: Comparing scenarios from a European perspective," Energy Policy, Elsevier, vol. 35(1), pages 210-226, January.
  25. Vicary, Simon, 2000. "Donations to a public good in a large economy," European Economic Review, Elsevier, vol. 44(3), pages 609-618, March.
Full references (including those not matched with items on IDEAS)

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:eme:jespps:v:39:y:2012:i:2:p:128-143. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Virginia Chapman)

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.