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AA00260492-19960002-0023.pdf
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Title |
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INTERNATIONAL INCOME TRANSFERS AND ENVIRONMENTAL QUALITY
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NIHO, Yoshio
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Kana |
ニホ, ヨシオ
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University of Wisconsin-Milwaukee, Keio University
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Keio Economic Society, Keio University
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1996
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Keio economic studies
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33
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2
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1996
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Start page |
23
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End page |
33
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Abstract |
The welfare effects of an international income transfer are examined using a differential game in which environmental quality enters into the utility functions of two countries as a public good. It is shown that if the countries have the same technology of cleaning up pollution (but may differ in any other way), an income transfer has no effect on the steady state or on transitional dynamics. However, if the transfer takes place from a country with a more efficient cleanup technology to the other country, environmental quality and the welfare of not only the donor but also of the recipient country decreases.
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