Forecasting Voluntary Investments for Mitigations in Global Warming: A Public Choice Analysis
Diverse discussions are taking place over what the next international effort against global warming should be. The cornerstone in global efforts to cope with global warming has been the Kyoto Protocol. Its establishment was a milestone in the field of global warming for enjoining international coordinated efforts. That being said, the Kyoto Protocol has much room for improvement.
Two major issues have interfered with international efforts. One has been the nonparticipation of the United States. The other has been the non-inclusion of obligations on developing countries to reduce emissions.
Based on public choice literature, politicians, bureaucrats and pressure groups are thought to favor the increasing of public expenditures. It would therefore follow that politicians, bureaucrats and pressure groups would support anti-warming projects financed by public monies. In addition, an assumption can be made that a segment of voters would also favor such projects out of concern for environmental issues and policies.
In this paper, a public choice analysis is applied to forecast voluntary investments in efforts to mitigate global warming, and it shows that voluntary investment activities can be ensured if voters are provided with accurate information about global warming and rules are established to restrict rent seeking activities.
Key wordsenvironmental policy global warming public choice
JEL ClassificationH0 N50
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