The Welfare Economics of Global Public Goods

27 Pages Posted: 11 Feb 2010

See all articles by Agnar Sandmo

Agnar Sandmo

Norwegian School of Economics (NHH); Norwegian School of Economics (NHH) - Department of Economics; CESifo (Center for Economic Studies and Ifo Institute)

Date Written: December 3, 2007

Abstract

This paper studies the conditions for a welfare-maximizing allocation of resources to the production of global public goods, such as biodiversity, the global climate, the cultural heritage, knowledge, and world peace. A global social welfare function is maximized subject to production constraints and alternative assumptions about the possibility of international transfers. It is shown that the desirability of global production efficiency is closely linked to the existence of international lump-sum transfers. Global public goods are considered both as consumption and production goods, and the theory is also applied to the issue of the uniformity of a global carbon tax.

JEL Classification: D6, H41, H87

Suggested Citation

Sandmo, Agnar, The Welfare Economics of Global Public Goods (December 3, 2007). NHH Dept. of Economics Discussion Paper No. 35/2007. Available at SSRN: https://ssrn.com/abstract=1550703 or http://dx.doi.org/10.2139/ssrn.1550703

Agnar Sandmo (Contact Author)

Norwegian School of Economics (NHH) ( email )

Helleveien 30
Bergen, NO-5045
Norway
+47 55 95 92 76 (Phone)

Norwegian School of Economics (NHH) - Department of Economics

Helleveien 30
N-5035 Bergen
Norway

CESifo (Center for Economic Studies and Ifo Institute)

Poschinger Str. 5
Munich, DE-81679
Germany

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