Please wait a minute...
Frontiers of Economics in China

ISSN 1673-3444

ISSN 1673-3568(Online)

CN 11-5744/F

邮发代号 80-978

Frontiers of Economics in China  2016, Vol. 11 Issue (1): 88-103   https://doi.org/10.3868/s060-005-016-0006-0
  本期目录
Transfers and the Samuelson Rule in Stock Externality Provision—Why Do We Need Them Both?
Zili Yang()
Department of Economics, State University of New York at Binghamton, Binghamton, NY 13902, USA
 全文: PDF(461 KB)  
Abstract

This paper examines the relationship between the Samuelson rule for efficient provision of stock externality and unilateral transfers for equalization of mitigation costs among the agents. Using a generic model of stock externality provisions, we proved that the revised Samuelson rule that allows transfers is a necessary and sufficient condition for efficient provision of stock externalities. In addition, selection of social welfare weights of the agents plays a key role in directions and magnitudes of the transfers. We discuss the implications of the revised Samuelson rule in economic modeling of climate change, an empirical case of stock externality, through numerical simulations in the RICE model.

Key wordsSamuelson rule    transfer    stock externality    mitigation cost equalization
出版日期: 2016-03-22
 引用本文:   
. [J]. Frontiers of Economics in China, 2016, 11(1): 88-103.
Zili Yang. Transfers and the Samuelson Rule in Stock Externality Provision—Why Do We Need Them Both?. Front. Econ. China, 2016, 11(1): 88-103.
 链接本文:  
https://academic.hep.com.cn/fec/CN/10.3868/s060-005-016-0006-0
https://academic.hep.com.cn/fec/CN/Y2016/V11/I1/88
Viewed
Full text


Abstract

Cited

  Shared   
  Discussed