Scandinavian Working Papers in Economics

Working Papers in Economics,
University of Gothenburg, Department of Economics

No 139: Global environmental problems, efficiency and limited altruism

Olof Johansson-Stenman ()
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Olof Johansson-Stenman: Department of Economics, School of Economics and Commercial Law, Göteborg University, Postal: Box 640, SE 405 30 GÖTEBORG

Abstract: Global environmental problems are often assumed to imply extensive inefficiencies since there is no global authority corresponding to the government at a national level. This paper shows, on the contrary, that rich countries in a free unregulated market may still undertake globally efficient abatement investments, given the existence of limited nonpaternalistic altruism.

Keywords: Global environmental problems; externalities; altruism; transboundary pollution

JEL-codes: D61; D62; D63; D64; Q20

10 pages, August 9, 2004

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