Buchholz, Wolfgang and Haupt, Alexander and Peters, Wolfgang (2016) Equity as a Prerequisite for Stability of Cooperation on Global Public Good Provision. ENVIRONMENTAL & RESOURCE ECONOMICS, 65 (1). pp. 61-78. ISSN 0924-6460, 1573-1502
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Analysing cooperative provision of a global public good such as climate protection, we explore the relationship between equitable burden sharing on the one hand and core stability on the other. To assess the size of the burden which a public good contribution entails for a country, we make use of a specific measure based on Moulin (Econometrica 55:963-977, 1987). In particular, we show that a Pareto optimal allocation which is not in the core can always be blocked by a group of countries with the highest Moulin sacrifices. In this sense, it is the 'overburdening' and thus 'unfair' treatment of some countries that provides the reason for core instability. By contrast, a Pareto optimal allocation is in the core if the public good contributions are fairly equally distributed according to their Moulin sacrifices. The potential implications of our theoretical analysis for global climate policy are also discussed.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | INTERNATIONAL ENVIRONMENTAL AGREEMENTS; COST SHARE EQUILIBRIA; ECONOMY; CORE; EQUIVALENCE; POLICY; Public goods; Core; Equity; Stability of cooperation |
| Subjects: | 300 Social sciences > 330 Economics |
| Divisions: | Business, Economics and Information Systems > Institut für Volkswirtschaftslehre und Ökonometrie > Lehrstuhl für Finanzwissenschaft, insbesondere Umweltökonomie (Prof. Dr. Wolfgang Buchholz) |
| Depositing User: | Dr. Gernot Deinzer |
| Date Deposited: | 04 Apr 2019 13:26 |
| Last Modified: | 04 Apr 2019 13:26 |
| URI: | https://pred.uni-regensburg.de/id/eprint/3428 |
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