Climate change, strict Pareto improvements in welfare and multilateral financial transfers
研究了在碳定价低效且存在贸易障碍时，发达国家向发展中国家提供资金转移能否实现所有国家的严格福利改进，并给出了存在条件。
Abstract Climate change discussions and negotiations have emphasized the need for developing countries to take the lead by undertaking economy-wide absolute emission reduction targets but also the obligation of developed countries to provide financial resources to assist them in their mitigation efforts. This article explores the role of such financial resources in achieving strict welfare gains for all countries (strict Pareto improvements) when emission targets, due to inefficient carbon pricing, deviate from the global welfare optimum and there are impediments to international trade. It is shown that such transfers exist if and only if a Generalized Hatta Normality Emissions Condition is violated. Numerical examples illustrate the financial transfer mechanism.