Strategic decentralization and the provision of global public goods
We study strategic decentralization in the provision of a global public good. A federation, with the aim of maximizing the aggregate utility of its members, may find it advantageous to decentralize the decision-making, so that its members act autonomously to maximize their own utility. If utility is...
| Main Authors: | , |
|---|---|
| Format: | Article |
| Published: |
Elsevier
2017
|
| Subjects: | |
| Online Access: | https://eprints.nottingham.ac.uk/49576/ |
| _version_ | 1848798028602802176 |
|---|---|
| author | Foucart, Renaud Wan, Cheng |
| author_facet | Foucart, Renaud Wan, Cheng |
| author_sort | Foucart, Renaud |
| building | Nottingham Research Data Repository |
| collection | Online Access |
| description | We study strategic decentralization in the provision of a global public good. A federation, with the aim of maximizing the aggregate utility of its members, may find it advantageous to decentralize the decision-making, so that its members act autonomously to maximize their own utility. If utility is fully transferable within a federation, the larger a federation is or the more sensitive it is to the public good, the more it has incentives to remain centralized. If an overall increase in the sensitivity to the public good induces some federation(s) to decentralize, it may lead to a decrease in the aggregate provision. With non-transferable utility within a federation, those members that are smaller or less sensitive to the public good are more likely to prefer decentralization. Some members within a federation becoming more sensitive to the public good may thus lead to a lower aggregate provision, because the increased heterogeneity of the federation makes it more inclined to decentralize. |
| first_indexed | 2025-11-14T20:13:16Z |
| format | Article |
| id | nottingham-49576 |
| institution | University of Nottingham Malaysia Campus |
| institution_category | Local University |
| last_indexed | 2025-11-14T20:13:16Z |
| publishDate | 2017 |
| publisher | Elsevier |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | nottingham-495762020-05-04T19:03:15Z https://eprints.nottingham.ac.uk/49576/ Strategic decentralization and the provision of global public goods Foucart, Renaud Wan, Cheng We study strategic decentralization in the provision of a global public good. A federation, with the aim of maximizing the aggregate utility of its members, may find it advantageous to decentralize the decision-making, so that its members act autonomously to maximize their own utility. If utility is fully transferable within a federation, the larger a federation is or the more sensitive it is to the public good, the more it has incentives to remain centralized. If an overall increase in the sensitivity to the public good induces some federation(s) to decentralize, it may lead to a decrease in the aggregate provision. With non-transferable utility within a federation, those members that are smaller or less sensitive to the public good are more likely to prefer decentralization. Some members within a federation becoming more sensitive to the public good may thus lead to a lower aggregate provision, because the increased heterogeneity of the federation makes it more inclined to decentralize. Elsevier 2017-09-01 Article PeerReviewed Foucart, Renaud and Wan, Cheng (2017) Strategic decentralization and the provision of global public goods. Journal of Environmental Economics and Management . ISSN 0095-0696 Global public goods; Decentralization; Delegation https://doi.org/10.1016/j.jeem.2017.08.006 doi:10.1016/j.jeem.2017.08.006 doi:10.1016/j.jeem.2017.08.006 |
| spellingShingle | Global public goods; Decentralization; Delegation Foucart, Renaud Wan, Cheng Strategic decentralization and the provision of global public goods |
| title | Strategic decentralization and the provision of global public goods |
| title_full | Strategic decentralization and the provision of global public goods |
| title_fullStr | Strategic decentralization and the provision of global public goods |
| title_full_unstemmed | Strategic decentralization and the provision of global public goods |
| title_short | Strategic decentralization and the provision of global public goods |
| title_sort | strategic decentralization and the provision of global public goods |
| topic | Global public goods; Decentralization; Delegation |
| url | https://eprints.nottingham.ac.uk/49576/ https://eprints.nottingham.ac.uk/49576/ https://eprints.nottingham.ac.uk/49576/ |