EconStor >
Institut für Weltwirtschaft (IfW), Kiel >
Kieler Arbeitspapiere, IfW >

Please use this identifier to cite or link to this item:

http://hdl.handle.net/10419/46810
  
Title:Sustainable development and international distribution: Theory and application to rainforests as carbon sinks PDF Logo
Authors:Mohr, Ernst
Issue Date:1993
Series/Report no.:Kiel Working Papers 602
Abstract:A situation is analysed in which two countries negotiate the financing of the incremental costs which accrue if one of them switches from a non-sustainable onto a sustainable development path. The other country's incentive to pay arises as it benefits from the developing country's environmental resources, but at an ever declining rate as long as development remains non-sustainable. The paper shows that such negotiations induce a redistribution of income in favour of the developing country which in general will exceed incremental costs. The paper also derives conditions under which the developing country has an incentive to get on a less sustainable path in the pre-agreement phase. In an application to the protection of tropical rainforests as carbon sinks it is shown that North to South redistribution of welfare would indeed be substantial. However, despite these transfer payments in excess of incremental costs the North would still gain enormously in efficiency terms from the use of the carbon sink option.
Subjects:Non-cooperative bargaining
environment
North-South cooperation
climate policy
JEL:C72
F35
Q20
Document Type:Working Paper
Appears in Collections:Publikationen von Forscherinnen und Forschern des IfW
Kieler Arbeitspapiere, IfW

Files in This Item:
File Description SizeFormat
257084371.pdf1.24 MBAdobe PDF
No. of Downloads: Counter Stats
Download bibliographical data as: BibTeX
Share on:http://hdl.handle.net/10419/46810

Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.