|
|
|
|
Title: |
On Shibata's Negation of Lump-Sum Transfers in
Global Warming Control |
| Author: |
Kohn, Robert E. |
| Author
Affiliation: |
Southern IL U |
| Source: |
International Economic Journal, Spring 2003, v. 17, no. 1, pp. 29-41 |
|
Publication Date: |
Spring 2003 |
|
Abstract: |
When all
countries tax domestic emissions of a pure global pollutant at a rate
equal to global marginal damage, some of these countries--typically,
developing countries--are likely to be worse off. To win the cooperation
of such developing countries, it is often advocated that they receive
lump-sum compensation from the industrialized countries. To the
contrary, Shibata (1996) argues that it is "not possible to make
developing countries any better off by lump-sum transfers of the [tax]
revenues." This pessimistic outlook is challenged in the present paper,
which reaffirms the case for international lump-sum transfers. |
|
