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An analysis of SO2 negotiations between Finland and the Soviet Union

  • Veijo Kaitala

    (Helsinki University of Technology)

  • Matti Pohjola

    (Research Institute of the Finnish Economy)

  • Olli Tahvonen

    (Helsinki School of Economics)

This paper considers Finnish-Soviet environmental cooperation. It is shown that efficient cooperation on reducing sulphur emissions may entail financial transfers from Finland to the Soviet Union because marginal abatement costs are much lower there. Soviet emissions should be drastically reduced in Kola peninsula and Estonia. The analysis is based on a sulphur transportation model, on estimated regional abatement cost functions and on the 'revealed-preference' approach in estimating the damage costs from pollution.

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Article provided by Finnish Economic Association in its journal Finnish Economic Papers.

Volume (Year): 4 (1991)
Issue (Month): 2 (Autumn)
Pages: 104-112

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Handle: RePEc:fep:journl:v:4:y:1991:i:2:p:104-112
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  1. 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 409-24.
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