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Environmental Aspects of Resource Extraction Contracts
This paper analyzes resource partnerships and their in uence on the environmental quality in a resource-rich country by introducing incomplete contracts, imperfect property rights protection, and a lack of valuation for the environment by the government in the South. Em- ploying numerical simulat...
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| Veröffentlicht in: | MAGKS - Joint Discussion Paper Series in Economics (Band 35-2014) |
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| 1. Verfasser: | |
| Format: | Artikel |
| Sprache: | Englisch |
| Veröffentlicht: |
Philipps-Universität Marburg
2014
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| Schlagworte: | |
| Online Zugang: | PDF-Volltext |
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| Zusammenfassung: | This paper analyzes resource partnerships and their in
uence on the environmental quality in a resource-rich country by introducing incomplete contracts, imperfect property rights protection, and a lack
of valuation for the environment by the government in the South. Em-
ploying numerical simulations, I determine the equilibrium extraction
rate, the applied extraction technology, and the environmental quality
in dependence of the state of democracy in the resource-rich country.
In contrast to what one might expect, under certain circumstances it
can be environmentally bene�cial to have incomplete contracts that
induce the utilization of a suboptimal technology for resource extrac-
tion. Further, reducing the holdup problem by shifting bargaining
power to the North, is only desirable if the environmental quality in-
creases with a better extraction technology. |
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| Umfang: | 29 Seiten |
| ISSN: | 1867-3678 |
| DOI: | 10.17192/es2024.0335 |