The role of intergovernmental grants for environmental problems

When grants are allocated from higher to lower levels in multilevel systems of government, multiple objectives associated with individual and collective welfare must be taken into account. A simple model, corresponding both to multilevels and to multiobjectives, for environmental problems is formulated in order to consider the role of intergovernmental grants explicitly. It is shown, through a case study of the model, that grant allocation plays a very important role in the case of environmental problems.