Altruistic Foreign Aid and Climate Change Mitigation

Arnaud Goussebaïle, Antoine Bommier, Amélie Goerger and Jean-Philippe Nicolaï
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Arnaud Goussebaïle: D-ERDW - Departement Erdwissenschaften [ETH Zürich] - ETH Zürich - Eidgenössische Technische Hochschule - Swiss Federal Institute of Technology [Zürich]
Antoine Bommier: D-ERDW - Departement Erdwissenschaften [ETH Zürich] - ETH Zürich - Eidgenössische Technische Hochschule - Swiss Federal Institute of Technology [Zürich]
Amélie Goerger: D-ERDW - Departement Erdwissenschaften [ETH Zürich] - ETH Zürich - Eidgenössische Technische Hochschule - Swiss Federal Institute of Technology [Zürich]
Jean-Philippe Nicolaï: GAEL - Laboratoire d'Economie Appliquée de Grenoble - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - UGA - Université Grenoble Alpes - Grenoble INP - Institut polytechnique de Grenoble - Grenoble Institute of Technology - UGA - Université Grenoble Alpes

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Abstract: This paper considers one altruistic developed country and several heterogeneous developing countries. We demonstrate that the lack of coordination between countries in tackling climate change finds an optimal solution if developing countries can expect to receive development aid transfers from the developed country. The mechanism requires a sufficiently high level of altruism and specific timing, but a global coalition is not necessary. We also show that the developed country may democratically assign a delegate who is more altruistic than its median voter in order to benefit from the efficiency gain generated by positive development aid transfers.

Keywords: Altruism; Climate change; Development aid; International policies; Public good (search for similar items in EconPapers)
Date: 2023
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Published in Environmental and Resource Economics, 2023, 84 (1), pp.219-239. ⟨10.1007/s10640-022-00722-w⟩

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Working Paper: Altruistic Foreign Aid and Climate Change Mitigation (2019)
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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-03833791

DOI: 10.1007/s10640-022-00722-w

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