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Pareto-improving Untied Aid with Environmental Externalities
Authors:Takumi?Naito  mailto:tnaito@soc.titech.ac.jp"   title="  tnaito@soc.titech.ac.jp"   itemprop="  email"   data-track="  click"   data-track-action="  Email author"   data-track-label="  "  >Email author
Affiliation:(1) Department of Social Engineering, Tokyo Institute of Technology, 2-12-1 O-okayama, Meguro-ku, Tokyo, 152-8552, Japan
Abstract:
This paper shows that even untied aid is Pareto-improving if and only if the marginal propensity to consume the polluting good in the donor country is sufficiently larger than in the recipient country.
Keywords:Pareto-improving untied aid  environmental externalities  marginal propensity to consume the polluting good
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