It is known that a Lindahl equilibrium is not necessarily Pareto-superior to the non-cooperative Cournot-Nash outcome. This paper derives conditions under which the Lindahl Pareto-dominates the Cournot-Nash solution. We show that all are better off in the Lindahl equilibrium as compared to the...

This paper explores the outcome of an international environmental agreement when the governments are elected by their citizens. It also considers a voter's incentives for supporting candidates who are less green than she is. In the extreme case of 'global' pollution, the elected politicians pay...

Both the economic theory of federalism and international environmental economics are interested in finding conditions under which countries or groups of countries would like to start cooperation with other countries. In the framework of the standard public-good model this paper presents a...

The Lindahl equilibrium is mostly motivated by a rather artificial price mechanism. Even though the analogy to a competitive market has been emphasised by Lindahl himself his approach does not directly explain the normative ideas, which are behind this concept. In the present paper we therefore...

In a public-good economy the distribution of initial income is an important determinant of how many individuals contribute to the public good. For the case when all individuals have identical preferences, a simple formula is derived in this paper which describes the proportion of all income...