Unilateral Actions the Case of International Environmental Problems
AbstractWhen abatement costs are uncertain, but correlated, and a country becomes pri-vately informed that costs are low, then unilateral actions serve as a signalling devise to reveal low costs and unilateral actions have the potential to trigger positive responses abroad. However, the country engaging in unilateral actions is the one with the highest expectation about the other countries’ reactions, and it might suffer from an effect like the winners curse.
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Bibliographic InfoPaper provided by University of Southern Denmark, Department of Environmental and Business Economics in its series Working Papers with number 40/03.
Length: 48 pages
Date of creation: Apr 2003
Date of revision:
International environmental problems; unilateral reductions; signal-ling costs;
Other versions of this item:
- Brandt, Urs Steiner, 2004. "Unilateral actions, the case of international environmental problems," Resource and Energy Economics, Elsevier, vol. 26(4), pages 373-391, December.
- Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy
- H4 - Public Economics - - Publicly Provided Goods
- D8 - Microeconomics - - Information, Knowledge, and Uncertainty
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