We use cookies to distinguish you from other users and to provide you with a better experience on our websites. Close this message to accept cookies or find out how to manage your cookie settings.
To save content items to your account,
please confirm that you agree to abide by our usage policies.
If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account.
Find out more about saving content to .
To save content items to your Kindle, first ensure no-reply@cambridge.org
is added to your Approved Personal Document E-mail List under your Personal Document Settings
on the Manage Your Content and Devices page of your Amazon account. Then enter the ‘name’ part
of your Kindle email address below.
Find out more about saving to your Kindle.
Note you can select to save to either the @free.kindle.com or @kindle.com variations.
‘@free.kindle.com’ emails are free but can only be saved to your device when it is connected to wi-fi.
‘@kindle.com’ emails can be delivered even when you are not connected to wi-fi, but note that service fees apply.
This chapter studies the properties of environmental externality from general equilibrium perspective in the four basic models --- SEEE, SEEN, DEEE, and DEEN models. The chapter establishes the key results of environmental externality provision. They are the triangular equivalence relationship among the Lindahl equilibrium without transfer, the Nash bargaining solution with the payoffs of Cournot-Nash equilibrium as the status quo point, and the social optimum under the Lindahl weights. In this framework, the mapping of efficient solutions of the models and the simplex of social welfare weights plays a critical role. To facilitate the application of these results in empirical research, we provide analytical and numerical examples to validate these results as well as the algorithmic approach to solve the solution concepts derived from the key results. In contrast to the Lindahl equilibrium, we also critically assess the popular Benthamite and Negishi solutions of environmental externality provisions as well as transfer issues. In the appendix, we offer the programming codes in GAMS language for the numerical example.
Recommend this
Email your librarian or administrator to recommend adding this to your organisation's collection.