Cooperation Blue

Paper Title: Chen, S, J Graff Zivin, H Wang, and J Xiong, “Combating Cross-Border Externalities,” NBER WP #30233.

Cocktail Pairing: Cooperation Blue

Rationale: This paper examines the impacts of a novel program to manage a water pollution problem that flows across provincial boundaries.  We find that the Ecological Compensation Initiative that allows downstream provinces to pay those upstream to reduce their pollution leads to sharp reductions in pollution and does so in a way that targets precisely those firms that are contributing to the transboundary problem. Cooperation Blue is vodka based, a neutral spirit representing purity and blue in color to represent the clean water over which these provinces are negotiating.  The lapsang souchong tea syrup and ginger bitters are a nod to China, with the smokiness of the former representing pollution and the latter representing the good health and longevity that arises from cleaner water.  Cooperation Blue is complex and multifaceted with elements of smokiness, acidity and sweetness, and a slightly spicy kick from the ginger bitters.

Recipe: Uneven Appreciation

• 1.5oz Vodka

• 0.75oz Blue Curaçao

• 0.5oz Lapsang Souchong Tea Syrup

• 0.75oz Fresh Lemon Juice

• 3-4 dashes ginger bitters

• Garnish: Lemon and Sprig of Rosemary

1. Combine all ingredients with ice in a shaker and shake vigorously until well chilled

2. Strain into a lowball or stemless wine glass with large ice cube.

3. Garnish with a with a sprig of fresh rosemary and a thin slice of lemon on the rim.

Additional Instructions: Lapsang Souchong Tea Syrup

1. Brew a strong cup of Lapsang Souchong tea

2. Combine equal parts tea and sugar and simmer until the sugar dissolves.

3. Let it cool completely.