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Unilateral actions, the case of international environmental problems

  • Brandt, Urs Steiner

When 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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Article provided by Elsevier in its journal Resource and Energy Economics.

Volume (Year): 26 (2004)
Issue (Month): 4 (December)
Pages: 373-391

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Handle: RePEc:eee:resene:v:26:y:2004:i:4:p:373-391
Contact details of provider: Web page: http://www.elsevier.com/locate/inca/505569

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  1. Hermalin, Benjamin E, 1998. "Toward an Economic Theory of Leadership: Leading by Example," American Economic Review, American Economic Association, vol. 88(5), pages 1188-1206, December.
  2. Hoel, Michael, 1991. "Global environmental problems: The effects of unilateral actions taken by one country," Journal of Environmental Economics and Management, Elsevier, vol. 20(1), pages 55-70, January.
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  8. Barrett, Scott, 1998. "Political Economy of the Kyoto Protocol," Oxford Review of Economic Policy, Oxford University Press, vol. 14(4), pages 20-39, Winter.
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  10. Becker, Gary S, 1983. "A Theory of Competition among Pressure Groups for Political Influence," The Quarterly Journal of Economics, MIT Press, vol. 98(3), pages 371-400, August.
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  12. Rabin, Matthew, 1997. "Psychology and Economics," Department of Economics, Working Paper Series qt8jd5z5j2, Department of Economics, Institute for Business and Economic Research, UC Berkeley.
  13. Urs Steiner Brandt, 2002. "Actions Prior to Entering an International Environmental Agreement," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 158(4), pages 695-, December.
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  16. repec:cup:cbooks:9780521583077 is not listed on IDEAS
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