A core-theoretic solution for the design of cooperative agreements on transfrontier pollution
AbstractFor a simple economic model of transfrontier pollution, widely used in theoretical studies of international treaties bearing on joint abatement, we exhibit in this paper a scheme for sharing national abatement costs, through international financial transfers, which is inspired by a very classical solution concept offered in the theory of cooperative games, namely the "core" of a game. The scheme has the following properties: (i) total damage and abatement costs in all countries are minimized (optimality property), and (ii) no "coalition", Le. subset, of countries can achieve lower such total costs for its members by taking another course of action in terms of emissions and/or transfers, under some reasonable assumption as to the reactions of those not in the coalition (core property).
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Bibliographic InfoArticle provided by Springer in its journal International Tax and Public Finance.
Volume (Year): 2 (1995)
Issue (Month): 2 (August)
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Web page: http://www.springerlink.com/link.asp?id=102915
cost of abatement; damage function; free riding; partial agreement Nash equilibrium; γ andα cores; optimal emission policy; international transfers;
Other versions of this item:
- CHANDER, Parkash & TULKENS, Henry, 1994. "A Core-Theoretic Solution for the Design of Cooperative Agreements on Transfrontier Pollution," CORE Discussion Papers 1994048, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Chander, Parkash & Tulkens, Henry, 1994. "A Core-Theoretic Solution for the Design of Cooperative Agreements on Transfrontier Pollution," Working Papers 897, California Institute of Technology, Division of the Humanities and Social Sciences.
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