Altruistic Foreign Aid and Climate Change Mitigation

Antoine Bommier, Amélie Goerger (), Arnaud Goussebaïle () and Jean-Philippe Nicolaï ()
Additional contact information
Amélie Goerger: ETH Zurich
Arnaud Goussebaïle: ETH Zurich
Jean-Philippe Nicolaï: Université Paris Nanterre

No 2019.21, Working Papers from FAERE - French Association of Environmental and Resource Economists

Abstract: This paper emphasizes the value of jointly addressing environmental and development objectives. We consider one altruistic developed country and several heterogeneous developing countries. We demonstrate that the lack of coordination between countries in tackling climate change finds a simple solution if developing countries can expect to receive development aid transfers from the developed country. The timing of the decision is central to the mechanism: development aid transfers should be determined after pollution abatement levels. The main restriction of our result is that it only holds if the developed country is altruistic enough to make positive development aid transfers to developing countries. Nevertheless, even from a purely selfish point of view, it may be profitable for the developed country to be more altruistic, leading to higher welfare for all countries.

Keywords: Public good provision; Altruism; Climate change; Development aid (search for similar items in EconPapers)
JEL-codes: D6 O1 Q5 (search for similar items in EconPapers)
Pages: 26 pages
Date: 2019-12
New Economics Papers: this item is included in nep-ene and nep-env
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://faere.fr/pub/WorkingPapers/Bommier_Goerger_ ... _FAERE_WP2019.21.pdf First version, 2019 (application/pdf)

Related works:
Working Paper: Altruistic Foreign Aid and Climate Change Mitigation (2022)
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:fae:wpaper:2019.21

Access Statistics for this paper

More papers in Working Papers from FAERE - French Association of Environmental and Resource Economists Contact information at EDIRC.
Bibliographic data for series maintained by Dorothée Charlier ().