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Paying For International Environmental Public Goods By Rodrigo Arriagada And Charles Perrings

1241 words - 5 pages

In this paper, I will base on articles, Paying for International Environmental Public Goods and Economic Incentives and Wildlife Conservation to discuss what an impure public good is, the types of externalities associated with impure public goods, the technology of public good supply, and the types of economic incentives (positive and negative) that are created for impure public goods with different technologies of public good supply.
According to Paying for International Environmental Public Goods, which is written by Rodrigo Arriagada and Charles Perrings, it mainly discusses how to prevent international environmental public goods (IEPG). There are many offset systems within a nation, which are set to prevent public goods. However, there is not an international authority to protect the undersupplied public good. People can gain many benefits from IEPGs, but they don’t have solutions for the problem of undersupply. In this article, Public goods are defined as “pure” only if they are non-exclusive and non-rival in consumption, whereas impure public goods are either partially excludable or rival. It’s impossible for any state to gain these kinds of public goods by itself; its supply depends on worldwide cooperation. However, new networks have changed people’s social participation and the way of exchange ideas. This raises concerns within the ethical liabilities of individuals, organizations, countries and cooperation and the alternative forms of governance of the biosphere. According to the article, “Three common examples of public good supply technologies are ‘additive’, ‘best shot’, and ‘weakest link’ technologies.” The additive technology consists of simple sum and weighted sum public goods. The best shot public goods is beneficial for all countries from the most effective provider, whereas the weakest link public goods is beneficial for all countries from the least effective provider. A significant feature of IEPG consists of “the natural hydrological and atmospheric flows and the social linkages between countries- the flow of goods, people and information.” (Pg.800) The next three sections will show how to address the undersupplied problem with IEPGs. First section will review why IEPG are underprovided. In order to produce the efficient amount of an IEPG, we should look into the differences between a pure good and a private good. A private good is that everyone pays the same price to get whatever amount they want, whereas a pure good is that people use the same amount and pay a different price. According to the article, “Efficiency requires that marginal benefit equals marginal cost.”(Pg.801) In some cases, the marginal benefits are the sum of all countries marginal benefits. However, in order to achieve “adequate provision,” this article pointed out that people should focus on technical considerations rather than costs, benefits or existing preferences and willingness to pay. Second section will discuss policy options, which will address...

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