A situation is analysed in which two countries negotiate the financing of the incremental costs which accrue if one of them switches from a non-sustainable onto a sustainable development path. The other country's incentive to pay arises as it benefits from the developing country's environmental...

Consider a country possessing a specific production factor in fixed quantity, producing in combination with land a stream of services through time. Some of these services are consumed domestically. The bulk of it, however, is consumed world-wide. Despite the services the country provides to the...