The Acid Rain Differential Game
AbstractThis paper considers an acid rain differential game. Countries emit sulphur which is partly transferred to other countries. Depositions above critical loads ultimately destroy the soil. Countries face a trade-off between the costs of emission reductions and the damage to the soil due to the depletion of the acid buffers. Because of the transboundary externalities the outcome will depend on whether the countries cooperate or not. This paper presents the cooperative outcome and the open-loop and Markov-perfect Nash equilibria of the acid rain differential game. It will be shown that the depositions always converge to the critical loads but the steady-state levels of the buffer stocks differ. The theory is used to analyse the acid rain differential game for sulphur between Great Britain and Ireland. Finally, some results are given for the whole of Europe. Copyright Kluwer Academic Publishers 1998
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by European Association of Environmental and Resource Economists in its journal Environmental and Resource Economics.
Volume (Year): 12 (1998)
Issue (Month): 2 (September)
Contact details of provider:
Web page: http://www.springerlink.com/link.asp?id=100263
acid rain; critical loads; differential games;
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Dockner Engelbert J. & Van Long Ngo, 1993. "International Pollution Control: Cooperative versus Noncooperative Strategies," Journal of Environmental Economics and Management, Elsevier, vol. 25(1), pages 13-29, July.
- Fudenberg, Drew & Maskin, Eric, 1986. "The Folk Theorem in Repeated Games with Discounting or with Incomplete Information," Econometrica, Econometric Society, vol. 54(3), pages 533-54, May.
- Gaitsgory, Vladimir & Nitzan, Shmuel, 1994. "A folk theorem for dynamic games," Journal of Mathematical Economics, Elsevier, vol. 23(2), pages 167-178, March.
- Tsutsui, Shunichi & Mino, Kazuo, 1990. "Nonlinear strategies in dynamic duopolistic competition with sticky prices," Journal of Economic Theory, Elsevier, vol. 52(1), pages 136-161, October.
RePEc Biblio mentionsAs found on the RePEc Biblio, the curated bibliography for Economics:
- > Environmental and Natural Resource Economics > Environmental Economics > Economics of acidification
- van den Broek, W. A., 2002. "Moving horizon control in dynamic games," Journal of Economic Dynamics and Control, Elsevier, vol. 26(6), pages 937-961, June.
- Hennessy, David A., 2008.
"Biosecurity incentives, network effects, and entry of a rapidly spreading pest,"
Elsevier, vol. 68(1-2), pages 230-239, December.
- Hennessy, David A., 2012. "Biosecurity Incentives, Network Effects, and Entry of a Rapidly Spreading Pest," Staff General Research Papers 35016, Iowa State University, Department of Economics.
- Ansuategi, Alberto & Escapa, Marta, 2002. "Economic growth and greenhouse gas emissions," Ecological Economics, Elsevier, vol. 40(1), pages 23-37, January.
- Kristen A. Sheeran, 2006. "Side Payments of Exceptions: The Implications for Equitable and Efficient Climate Control," Eastern Economic Journal, Eastern Economic Association, vol. 32(3), pages 515-532, Summer.
- Iho, Antti & Parker, Doug & Zilberman, David, 2013. "Optimal Regional Policies to Control Manure Nutrients to Surface and Ground Waters," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 149922, Agricultural and Applied Economics Association.
- Francisco Alvarez-Cuadrado & Ngo Van Long, 2008. "Relative Consumption and Resource Extraction," CIRANO Working Papers 2008s-27, CIRANO.
- GERMAIN, Marc & VAN YPERSELE, Jean-Pascal, 1999. "Financial transfers to sustain international cooperation in the climate change framework," CORE Discussion Papers 1999036, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Finus, Michael & Tjotta, Sigve, 2003. "The Oslo Protocol on sulfur reduction: the great leap forward?," Journal of Public Economics, Elsevier, vol. 87(9-10), pages 2031-2048, September.
- Claudio A. Piga, 2006.
"Pigouvian Taxation in Tourism,"
Discussion Paper Series
2006_2, Department of Economics, Loughborough University, revised Jan 2006.
- Erik Schmieman & Ekko van Ierland & Leen Hordijk, 2002. "Dynamic Efficiency with Multi-Pollutants and Multi-Targets The Case of Acidification and Tropospheric Ozone Formation in Europe," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 23(2), pages 133-148, October.
- Basak Bayramoglu, 2006.
"Transboundary Pollution in the Black Sea: Comparison of Institutional Arrangements,"
Environmental & Resource Economics,
European Association of Environmental and Resource Economists, vol. 35(4), pages 289-325, December.
- Basak Bayramoglu, 2004. "Transboundary pollution in the black sea : comparison of institutional arrangements," Cahiers de la Maison des Sciences Economiques v04020, Université Panthéon-Sorbonne (Paris 1).
- Schmieman, Erik C. & van Ierland, Ekko C., 1999. "Dynamics of soil acidification: an economic analysis," Ecological Economics, Elsevier, vol. 31(3), pages 449-462, December.
- GERMAIN, Marc & TOINT, Philippe & TULKENS, Henry & DE ZEEUW, Aart, 1998. "Transfers to sustain core-theoretic cooperation in international stock pollutant control," CORE Discussion Papers 1998032, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Ciscar, Juan Carlos & Soria, Antonio, 2002. "Prospective analysis of beyond Kyoto climate policy: a sequential game framework," Energy Policy, Elsevier, vol. 30(15), pages 1327-1335, December.
- Santiago J. Rubio, 2001. "International Cooperation In Pollution Control," Working Papers. Serie AD 2001-21, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Guenther Eichhorn) or (Christopher F. Baum).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.