Transfer payments to developing countries for environmental protection: a viewpoint

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Abstract
Where international environmental externalities are unidirectional, the country which is generating these externalities will tend to ignore the damages inflicted on other nations, for example environmental damages of deforestation. Using the unique ecosystem of tropical rain forests (TRF) as an example, the article addresses issues of efficiency and equity, including the problems of international transfer payments from industrialized countries (IC) to developing countries (DC) as means of internalization of environmental damages.

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