EconPapers    
Economics at your fingertips  
 

Equity as a Prerequisite for Stability of Cooperation on Global Public Good Provision

Wolfgang Buchholz (), Alexander Haupt () and Wolfgang Peters ()
Additional contact information
Wolfgang Peters: European University Viadrina

Environmental & Resource Economics, 2016, vol. 65, issue 1, No 4, 78 pages

Abstract: Abstract 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.

Keywords: Public goods; Core; Equity; Stability of cooperation (search for similar items in EconPapers)
JEL-codes: C71 D63 H41 (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2) Track citations by RSS feed

Downloads: (external link)
http://link.springer.com/10.1007/s10640-015-9907-z Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
Working Paper: Equity as a Prerequisite for Stability of Cooperation on Global Public Good Provision (2014) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:kap:enreec:v:65:y:2016:i:1:d:10.1007_s10640-015-9907-z

Ordering information: This journal article can be ordered from
http://www.springer. ... al/journal/10640/PS2

DOI: 10.1007/s10640-015-9907-z

Access Statistics for this article

Environmental & Resource Economics is currently edited by Ian J. Bateman

More articles in Environmental & Resource Economics from Springer, European Association of Environmental and Resource Economists Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla ().

 
Page updated 2020-09-09
Handle: RePEc:kap:enreec:v:65:y:2016:i:1:d:10.1007_s10640-015-9907-z