Paper [I] concerns climate policy and addresses the potential welfare gains of introducing a
technology transfer from the North (richer countries) to the South (poorer countries). The
results largely depend on the environmental policy in the pre- transfer resource allocation and,
in particular, whether or not the South abates its own emissions. Although the technology
transfer is desirable from a “global social planners” point of view, it is shown that the
incentives to use the transfer might be weak from the perspective of the North; at least if the
South takes its own measures to reduce emissions. However, in a situation where the North is
committed to emission reductions according to the Kyoto protocol, it is shown that there will
clearly be incentives for the North to use the technology transfer in order to reach the Kyoto
targets in a more cost efficient way.
In paper [II], the likely effects of an environmental fiscal reform in Namibia are examined by
means of a Computable General Equilibrium (CGE) model. The results show that the
introduction of an environmental fiscal reform, where taxes on natural and environmental
resources (fish rents, energy and water) are recycled to the economy in different ways might
give rise to benefits in terms of GDP, employment and income distribution, in addition to the
environmental impacts. While subsidizing unskilled labour would give the most favourable
outcome in terms of real GDP and employment impacts, a decrease in food taxes might be a
more interesting option if GDP, employment, income distribution and environmental impacts
are considered in combination.