Pollution in a globalized world: Are debt transfers among countries a solution?

Marion Davin, Mouez Fodha and Thomas Seegmuller ()
Additional contact information
Marion Davin: CEE-M - Centre d'Economie de l'Environnement - Montpellier - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - Institut Agro Montpellier - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement - UM - Université de Montpellier
Thomas Seegmuller: AMSE - Aix-Marseille Sciences Economiques - EHESS - École des hautes études en sciences sociales - AMU - Aix Marseille Université - ECM - École Centrale de Marseille - CNRS - Centre National de la Recherche Scientifique

Post-Print from HAL

Abstract: We analyze the effects of a debt relief, that is, a decrease in public debt of a low-income country financed by a high-income country, on environmental quality. Under perfect mobility of assets, the debt relief increases the overall capital stock, and environmental quality when public abatements are sufficiently efficient. Welfare in both countries can also improve. Under a weak mobility of assets, capital does no more increase in the richest country, but environmental quality can improve. This comes from a crowding-out effect of debt in the high-income country, which does no more take place when the mobility of assets is significant.

Keywords: Capital market integration; Global pollution; Overlappinggenerations; Public debt; Overlapping generations (search for similar items in EconPapers)
Date: 2023
Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-04331398v2
References: View references in EconPapers View complete reference list from CitEc
Citations:

Published in International Journal of Economic Theory, 2023, 19 (1), pp.21-38. ⟨10.1111/ijet.12333⟩

Downloads: (external link)
https://shs.hal.science/halshs-04331398v2/document (application/pdf)

Related works:
Journal Article: Pollution in a globalized world: Are debt transfers among countries a solution? (2023)
Working Paper: Pollution in a globalized world: Are debt transfers among countries a solution? (2023)
Working Paper: Pollution in a globalized world: Are debt transfers among countries a solution? (2019)
Working Paper: Pollution in a globalized world: Are debt transfers among countries a solution? (2019)
Working Paper: Pollution in a globalized world: Are debt transfers among countries a solution? (2019)
Working Paper: Pollution in a globalized world: Are debt transfers among countries a solution? (2019)
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:hal:journl:halshs-04331398

DOI: 10.1111/ijet.12333

Access Statistics for this paper

More papers in Post-Print from HAL
Bibliographic data for series maintained by CCSD ().