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An Economic Model of International Negotiations Relating to Transfrontier Pollution

In: Public goods, environmental externalities and fiscal competition

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  • Henry Tulkens

Abstract

This paper formulates a mathematical model of negotiations taking place between delegates of countries whose citizens share a common resource, viz. the ”Southern Bight” (i.e. the southern part of the North Sea) and are concerned about its quality for various and possibly conflicting reasons. The negotiations process, proved to converge to a Pareto optimum of the international economy, is formulated in terms of gradual domestic abatements of pollutants, with a hydrodynamic and ecological model called upon for expressing the effects of these abatements on the quality of the sea. In addition, compensatory payments among countries are defined which are shown to cover all abatement costs, to break even and to be such that for each country individually, benefits are larger than the net costs they incur. The concluding section raises the free riding issue in this context, and considers the relation between reaching an optimum in this way and the ”polluters pay principle”.

Suggested Citation

  • Henry Tulkens, 2006. "An Economic Model of International Negotiations Relating to Transfrontier Pollution," Springer Books, in: Parkash Chander & Jacques Drèze & C. Knox Lovell & Jack Mintz (ed.), Public goods, environmental externalities and fiscal competition, chapter 0, pages 107-121, Springer.
    • Handle: RePEc:spr:sprchp:978-0-387-25534-7_7
    DOI: 10.1007/978-0-387-25534-7_7
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    Cited by:

    1. Johan Eyckmans & Henry Tulkens, 2006. "Simulating Coalitionally Stable Burden Sharing Agreements for the Climate Change Problem," Springer Books, in: Parkash Chander & Jacques Drèze & C. Knox Lovell & Jack Mintz (ed.), Public goods, environmental externalities and fiscal competition, chapter 0, pages 218-249, Springer.
    2. Gersbach, Hans & Winkler, Ralph, 2011. "International emission permit markets with refunding," European Economic Review, Elsevier, vol. 55(6), pages 759-773, August.
    3. Germain, Marc & Tulkens, Henry & Magnus, Alphonse, 2010. "Dynamic core-theoretic cooperation in a two-dimensional international environmental model," Mathematical Social Sciences, Elsevier, vol. 59(2), pages 208-226, March.
    4. Jon Hovi & Hugh Ward & Frank Grundig, 2015. "Hope or Despair? Formal Models of Climate Cooperation," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 62(4), pages 665-688, December.
    5. Henry Tulkens & Parkash Chandler, 1992. "Aspects stratégiques des négociations internationales sur les pollutions transfrontières et du partage des coûts de l'épuration," Revue Économique, Programme National Persée, vol. 43(4), pages 755-768.
    6. Yingxuan Zhang, 2020. "Regional Collaborative Electricity Consumption Management: an Urban Operations Research Model," SN Operations Research Forum, Springer, vol. 1(4), pages 1-28, December.
    7. Daniel G. Arce M., 2000. "The Evolution of Heterogeneity in Biodiversity and Environmental Regimes," Journal of Conflict Resolution, Peace Science Society (International), vol. 44(6), pages 753-772, December.
    8. Gersbach, Hans & Winkler, Ralph, 2012. "Global refunding and climate change," Journal of Economic Dynamics and Control, Elsevier, vol. 36(11), pages 1775-1795.
    9. Peymaneh Safaynikoo & Mohammad Hossein Dehghani, 2021. "Impact of international lobby groups on international environmental agreements," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 23(2), pages 441-466, April.
    10. Asheim, Geir B. & Froyn, Camilla Bretteville & Hovi, Jon & Menz, Fredric C., 2006. "Regional versus global cooperation for climate control," Journal of Environmental Economics and Management, Elsevier, vol. 51(1), pages 93-109, January.

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