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On Fostering International Public Good Provision: Would Complementarity between Public Good and In-Kind Transfers Help?

Author

Listed:
  • Karen Pittel

    (Ifo Institute and University of Munich)

  • Dirk Rübbelke

    (Technische Universität Bergakademie Freiberg)

Abstract

A large strand of literature investigates the effects of transfers on the provision of international public goods and on the welfare of donor and recipient. We consider the special case where transfers are conditional on the recipient's contribution to the public good. Transfers take the shape of specific private good transfers which, however, also affect the recipient's benefits from the public good. Public good and in-kind transfers may either be complements or substitutes. As we show, the profitability of adaptation transfers depends only partly on whether the public good and transferred private goods are complements or substitutes. Decisive is rather the strengths of income and substitution effects generated through the transfers.

Suggested Citation

  • Karen Pittel & Dirk Rübbelke, 2015. "On Fostering International Public Good Provision: Would Complementarity between Public Good and In-Kind Transfers Help?," Economics Bulletin, AccessEcon, vol. 35(3), pages 1638-1644.
    • Handle: RePEc:ebl:ecbull:eb-14-01040
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    File URL: http://www.accessecon.com/Pubs/EB/2015/Volume35/EB-15-V35-I3-P164.pdf
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    Citations

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    Cited by:

    1. Bréchet, Thierry & Hritonenko, Natali & Yatsenko, Yuri, 2016. "Domestic environmental policy and international cooperation for global commons," Resource and Energy Economics, Elsevier, vol. 44(C), pages 183-205.
    2. Mukherjee Vivekananda & Rübbelke Dirk & Stahlke Theresa & Brumme Anja, 2022. "Allocation of Adaptation Aid: A Normative Theory," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 242(4), pages 471-499, August.

    More about this item

    Keywords

    Voluntary Provision of Public Goods; Conditional Transfers; International Climate Policy; Complements; Substitutes; Welfare Analysis;
    All these keywords.

    JEL classification:

    • H4 - Public Economics - - Publicly Provided Goods
    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics

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