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Impure public goods and technological interdependencies

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Abstract

Purpose – This paper aims to investigate empirically the findings of an analytical impure public good model. The impure public good model described in this study allows for the application of different technologies generating public and private characteristics. The influence of the individual technologies on the total level of (impure) public good provision is of main concern in this study. Design/methodology/approach – After the illustration of the impure public good model, the analytical results are compared to the results of a numerical approach based on climate policy in Germany. Findings – The study shows that comparative static analyses do not always generate clear results. Therefore, the numerical approach is helpful to derive unambiguous results. The paper finds that technologies which exclusively generate private characteristics may have significant effects on total impure public good provision, since they may replace the private characteristics of the impure public good. Originality/value – This paper provides useful information on the influence of the individual technologies on the total level of (impure) public good provision.

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