International Public Goods Advantages And Disadvantages
Page 1 International Economics & Development Donors Financing International Public Goods Rajesh Krishnamurthy - 59661 Rohit Raju - 59385 June - 05 - 2015 Page 2 Table of contents 1. Introduction 3 2. Importance of IPG 4 3. Climate Change as Public good 4 3.1 Economic uncertainties in climate change. 5 3.2 Climate change as public good 6 3.3 Equitable commitment definition 6 4. Financing and Provision for the global public good 6 4.1 Free riding 6 4.2 Externality 7 5. Kyoto Protocol 8 6. Difficulties in the allocation of GPG 8 7. Conclusion 10 8. References 11 Page 3 1. Introduction International public goods (IPG) are commodities whose effects are widely spread across the whole world. For an International public commodity, it costs nothing to spread the service further to another individual moreover its nearly impractical to eliminate people from enjoying the benefits or its effects. These commodities are mainly used for developmental purposes and to eradicate poverty. Some examples for global public goods (GPG) are quality education, health care, cleaner environment, peaceful atmosphere and life security. In present scenario international public goods have become a topic of interest in the field of academics. Wide spread studies regarding this subject is taking place in various parts of the globe. These goods are transboundary in nature which makes them undersupplied. This is the reason why these goods require donors who can provide financial aid for extending it to a
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