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Balanced Environmental Games

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Author Info

  • Flåm, Sjur Didrik

    ()
    (University of Bergen, Department of Economics)

Abstract

Focus is here on coalitional games among economic agents plagued by aggregate pollutions of diverse sorts. Defecting players presumably pollute more than others. Then, granted convex preferences and technologies, the core is proven nonempty. In fact, under natural assumptions, a specific, computable core solution comes in terms of shadow prices on the said aggregates. Such prices may, in large part, implement the cooperative treaty by clearing a competitive market for emissions.

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File URL: http://www.uib.no/filearchive/17-02.pdf
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Bibliographic Info

Paper provided by University of Bergen, Department of Economics in its series Working Papers in Economics with number 17/02.

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Length: 6 pages
Date of creation: 23 Sep 2002
Date of revision:
Handle: RePEc:hhs:bergec:2002_017

Contact details of provider:
Postal: Institutt for økonomi, Universitetet i Bergen, Postboks 7802, 5020 Bergen, Norway
Phone: (+47)55589200
Fax: (+47)55589210
Email:
Web page: http://www.uib.no/econ/en
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Related research

Keywords: Cooperative Games; Pollution Control Adoption Costs; Distribution Effects; Employment Effects;

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References

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  1. Chander, Parkash & Tulkens, Henry, 1994. "The Core of an Economy With Multilateral Environmental Externalities," Working Papers 886, California Institute of Technology, Division of the Humanities and Social Sciences.
  2. Carsten Helm, 2001. "On the existence of a cooperative solution for a coalitional game with externalities," International Journal of Game Theory, Springer, vol. 30(1), pages 141-146.
  3. Kaneko, Mamoru, 1977. "The Ratio Equilibria and the Core of the Voting Game G(N, W) in a Public Goods Economy," Econometrica, Econometric Society, vol. 45(7), pages 1589-94, October.
  4. Rosenthal, Robert W., 1971. "External economies and cores," Journal of Economic Theory, Elsevier, vol. 3(2), pages 182-188, June.
  5. Yukihiko Funaki & Takehiko Yamato, 1999. "The core of an economy with a common pool resource: A partition function form approach," International Journal of Game Theory, Springer, vol. 28(2), pages 157-171.
  6. Evstigneev, I.V. & Flam, S.D., 2000. "Sharing Nonconvex Costs," Norway; Department of Economics, University of Bergen 1300, Department of Economics, University of Bergen.
  7. Ray, D. & Vohra, R., 1993. "Equilibrium Binding Agreements," Papers 21, Boston University - Department of Economics.
  8. Tahvonen Olli & Kaitala Veijo & Pohjola Matti, 1993. "A Finnish - Soviet Acid Rain Game: Noncooperative Equilibria, Cost Efficiency, and Sulfur Agreements," Journal of Environmental Economics and Management, Elsevier, vol. 24(1), pages 87-100, January.
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