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Piercing the Veil of Uncertainty in Transboundary Pollution Agreements

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  • Charles Kolstad

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Abstract

This paper addresses the question of how uncertainty in costs and benefits affects the difficulty of reaching a voluntary agreement among sovereign states. A measure of “difficulty” is constructed related to side-payments necessary to make an agreement a Pareto-improving move. Using a simple model, it is shown that uncertainty actually makes agreement easier. Copyright Springer 2005

Suggested Citation

  • Charles Kolstad, 2005. "Piercing the Veil of Uncertainty in Transboundary Pollution Agreements," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 31(1), pages 21-34, May.
  • Handle: RePEc:kap:enreec:v:31:y:2005:i:1:p:21-34 DOI: 10.1007/s10640-004-6980-0
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Pierre-André Jouvet & Fabien Prieur, 2006. "Permis de pollution et contraintes politiques dans un modèle à générations imbriquées," EconomiX Working Papers 2006-21, University of Paris Nanterre, EconomiX.
    2. Finus, Michael & Pintassilgo, Pedro, 2013. "The role of uncertainty and learning for the success of international climate agreements," Journal of Public Economics, Elsevier, vol. 103(C), pages 29-43.
    3. Michael Finus & Pedro Pintassilgo, 2012. "International environmental agreements under uncertainty: does the 'veil of uncertainty' help?," Oxford Economic Papers, Oxford University Press, vol. 64(4), pages 736-764, October.
    4. Boucher, Vincent & Bramoullé, Yann, 2010. "Providing global public goods under uncertainty," Journal of Public Economics, Elsevier, vol. 94(9-10), pages 591-603, October.
    5. Vincent Boucher & Yann Bramoullé, 2007. "Risk Aversion and International Environmental Agreements," Cahiers de recherche 0739, CIRPEE.
    6. repec:dau:papers:123456789/4069 is not listed on IDEAS
    7. Julien Chevallier, 2009. "Intertemporal Emissions Trading and Market Power: A Dominant Firm with Competitive Fringe Model," Working Papers halshs-00388207, HAL.
    8. Alfred Endres, 2008. "Ein Unmöglichkeitstheorem für die Klimapolitik?," Perspektiven der Wirtschaftspolitik, Verein für Socialpolitik, vol. 9(3), pages 350-382, August.
    9. Baldursson, Fridrik M & Lazarczyk, Ewa & Ovaere, Marten & Proost, Stef, 2017. "Cross-border Exchange and Sharing of Generation Reserve Capacity," Working Paper Series 1178, Research Institute of Industrial Economics.
    10. Aurélie Slechten, 2015. "Environmental agreements under asymmetric information," Working Papers 95042257, Lancaster University Management School, Economics Department.
    11. repec:dau:papers:123456789/4228 is not listed on IDEAS
    12. Julien Chevallier, 2009. "Intertemporal Emissions Trading and Allocation Rules: Gainers, Losers and the Spectre of Market Power," Working Papers halshs-00124713, HAL.
    13. Kolstad, Charles D., 2007. "Systematic uncertainty in self-enforcing international environmental agreements," Journal of Environmental Economics and Management, Elsevier, vol. 53(1), pages 68-79, January.
    14. Kolstad Charles D, 2010. "Equity, Heterogeneity and International Environmental Agreements," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 10(2), pages 1-17, October.

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