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Altruistic Foreign Aid and Climate Change Mitigation

Author

Listed:
  • Arnaud Goussebaïle

    (D-ERDW - Departement Erdwissenschaften [ETH Zürich] - ETH Zürich - Eidgenössische Technische Hochschule - Swiss Federal Institute of Technology [Zürich])

  • Antoine Bommier

    (D-ERDW - Departement Erdwissenschaften [ETH Zürich] - ETH Zürich - Eidgenössische Technische Hochschule - Swiss Federal Institute of Technology [Zürich])

  • Amélie Goerger

    (D-ERDW - Departement Erdwissenschaften [ETH Zürich] - ETH Zürich - Eidgenössische Technische Hochschule - Swiss Federal Institute of Technology [Zürich])

  • Jean-Philippe Nicolaï

    (GAEL - Laboratoire d'Economie Appliquée de Grenoble - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - UGA - Université Grenoble Alpes - Grenoble INP - Institut polytechnique de Grenoble - Grenoble Institute of Technology - UGA - Université Grenoble Alpes)

Abstract

This paper considers one altruistic developed country and several heterogeneous developing countries. We demonstrate that the lack of coordination between countries in tackling climate change finds an optimal solution if developing countries can expect to receive development aid transfers from the developed country. The mechanism requires a sufficiently high level of altruism and specific timing, but a global coalition is not necessary. We also show that the developed country may democratically assign a delegate who is more altruistic than its median voter in order to benefit from the efficiency gain generated by positive development aid transfers.

Suggested Citation

  • Arnaud Goussebaïle & Antoine Bommier & Amélie Goerger & Jean-Philippe Nicolaï, 2023. "Altruistic Foreign Aid and Climate Change Mitigation," Post-Print hal-03833791, HAL.
    • Handle: RePEc:hal:journl:hal-03833791
    DOI: 10.1007/s10640-022-00722-w
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    JEL classification:

    • D6 - Microeconomics - - Welfare Economics
    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development

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