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An Economic Analysis of Transboundary Air Pollution between Finland and the Former Soviet Union

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  • Kaitala, Veijo
  • Pohjola, Matti
  • Tahvonen, Olli

Abstract

The net benefits of bilateral cooperation between Finland and the former Soviet Union on reducing sulphur emissions are evaluated for both parties. The analysis is based on a sulphur transportation model and on estimated abatement cost functions. It is shown that efficient cooperation may entail financial transfers from Finland to the Soviet Union because it is cheaper to abate sulpher there. It is further demonstrated that a recently signed agreement aimed at reductions in air pollutants is not rational from the Soviet Union's viewpoint and may not, therefore, be carried out without monetary support from Finland. Copyright 1992 by The editors of the Scandinavian Journal of Economics.

Suggested Citation

  • Kaitala, Veijo & Pohjola, Matti & Tahvonen, Olli, 1992. " An Economic Analysis of Transboundary Air Pollution between Finland and the Former Soviet Union," Scandinavian Journal of Economics, Wiley Blackwell, vol. 94(3), pages 409-424.
  • Handle: RePEc:bla:scandj:v:94:y:1992:i:3:p:409-24
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    Cited by:

    1. Jean-Christophe Pereau & Tarik Tazdait, 2001. "Co-operation and Unilateral Commitment in the Presence of Global Environmental Problems," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 20(3), pages 225-239, November.
    2. Begona Casino, 2002. "J curve for abatement with transboundary pollution," Economics Bulletin, AccessEcon, vol. 17(2), pages 1-9.
    3. Veijo Kaitala & Matti Pohjola & Olli Tahvonen, 1992. "Transboundary air pollution and soil acidification: A dynamic analysis of an acid rain game between Finland and the USSR," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 2(2), pages 161-181, March.
    4. Veijo Kaitala & Matti Pohjola & Olli Tahvonen, 1991. "An analysis of SO2 negotiations between Finland and the Soviet Union," Finnish Economic Papers, Finnish Economic Association, vol. 4(2), pages 104-112, Autumn.
    5. Pierre Courtois & Jean-Christophe Péreau & Tarik Tazdaït, 2004. "Une approche évolutionnaire des négociations internationales en présence de problèmes environnementaux globaux," Recherches économiques de Louvain, De Boeck Université, vol. 70(1), pages 31-51.
    6. Smala Fanokoa, Pascaux & Telahigue, Issam & Zaccour, Georges, 2011. "Buying cooperation in an asymmetric environmental differential game," Journal of Economic Dynamics and Control, Elsevier, vol. 35(6), pages 935-946, June.
    7. repec:ebl:ecbull:v:17:y:2002:i:2:p:1-9 is not listed on IDEAS
    8. Wang, Yiming, 2013. "A time-consistent model for cooperation in international pollution control," Economic Modelling, Elsevier, vol. 33(C), pages 500-506.
    9. Toshiyuki Fujita, 2004. "Design of international environmental agreements under uncertainty," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 6(2), pages 103-118, June.
    10. Kari Alho, 1992. "Bilateral transfers and lending in international environmental cooperation," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 2(2), pages 201-220, March.

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