Foreign Aid and Global Public Goods: Impure Publicness, Cost Differentials and Negative Conjectures

Abstract

Recently, politicians stressed the relevance of an old international policy to raise the provision of international or global public goods: foreign aid. Among such international or global public goods is the provision of climate policy, protection of the ozone layer and international waters. In this paper, we analyze the effect of foreign aid on international climate policy. We take account of cost differentials among countries in producing the public good, ancillary benefits of climate policy, alternative technologies independently generating ancillary benefits and non-zero conjectures.