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On the Core of an Economy with Multilateral and Multidimensional Environmental Externalities

Author

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  • Charles Figuieres
  • Magali Verdonck

Abstract

For simple economic models of transfrontier pollution, Chander and Tulkens (1995) and (1997) have offered a formula for transfers to sustain international cooperation on a voluntary basis and which deter coalitional free-riding under some reasonable behaviours of countries not in the coalition. Their scheme rests on the assumption that pollution is a scalar. Relaxing this assumption, interesting interactions among pollutations arise that call for a new formula. In this paper we extend Chander and Tulkens formula for this more realistic multidimensional context, and thereby enhance the practical and theoretical relevance of their seminal analysis.

Suggested Citation

  • Charles Figuieres & Magali Verdonck, 2003. "On the Core of an Economy with Multilateral and Multidimensional Environmental Externalities," Bristol Economics Discussion Papers 03/548, School of Economics, University of Bristol, UK.
    • Handle: RePEc:bri:uobdis:03/548
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    Cited by:

    1. Porchiung Chou & Cheickna Sylla, 2008. "The formation of an international environmental agreement as a two-stage exclusive cartel formation game with transferable utilities," International Environmental Agreements: Politics, Law and Economics, Springer, vol. 8(4), pages 317-341, December.

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    JEL classification:

    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics

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