We develop a two-country model in which each country contributes noncooperatively to the global environment by improving its local environment. We introduce an index of environmental awareness that measures the extent to which a country is aware of the global environment. Then we demonstrate that this index plays a key role in evaluating the effects of income growth and international transfers on the global environment.
ASJC Scopus subject areas
- Economics and Econometrics
- Management, Monitoring, Policy and Law