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Title: |
On Shibata's Negation of Lump-Sum Transfers in
Global Warming Control: Rejoinder |
| Author: |
Shibata,
Hirofumi |
| Author
Affiliation: |
Kanto-Gakuen U |
| Source: |
International Economic Journal, Spring 2003, v. 17, no. 1, pp. 43-55 |
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Publication Date: |
Spring 2003 |
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Abstract: |
Kohn's
criticism of my negation of the role of lump-sum transfers financed by a
global emission tax is based on two unacceptable premises. He assumes a
world consisting of cooperative nations. But if nations were cooperative
no corrective tax is needed as they could internalize external
diseconomies without a super national governmental intervention. A
global tax analysis must assume non-cooperative nations as I did. He
treats lump-sum transfers as negotiable payments for compliance by the
country unfavorable affected by the tax. But the standard interpretation
of the lump-sum transfers is payments that do not influence private
economic decisions. In my analysis lump-sum transfers have their usual
interpretation. This rejoinder also reinforces my original claim with a
formal proof that every nation's post-tax welfare is independent of
lump-sum transfers and of their aggregate resources. |
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