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International Negotiations on Acid Rains in Northern Europe : A Discrete Time Iterative Process

Author

Listed:
  • GERMAIN, Marc

    (CORE, Université catholique de Louvain, B-1348 Louvain-la-Neuve, Belgium)

  • TOINT, Philippe

    (Departement de Mathématiques, Facultés universitaires Notre-Dame de la Paix, Namur)

  • TULKENS, Henry

    (CORE and IRES, Université catholique de Louvain, B-1348 Louvain-la-Neuve, Belgium)

Abstract

This paper proposes a dynamic model of international negotiations on transboundary pollution. This approach is characterized by a discrete time formulation ( at variance with the continuous model of Kaitale et al.(1995)) and by a suitable formulation of the local information assumption on cost and damage functions: at each stage of the negotiation, the parties assign the best possible cooperative state, given the available information, as an objective for the next stage. It is shown that the resulting sequences of states converges to a Pareto optimum in a finite number of stages. Furthermore, a financial transfers structure is formulated, which guarantees that the desired sequence of states is rational for the involved parties, at the individual as well as the coalition level.The concepts are applied in a numerical simulation of the SO2 transboundary pollution problem related to acid rains in Northern Europe.

Suggested Citation

  • GERMAIN, Marc & TOINT, Philippe & TULKENS, Henry, 1995. "International Negotiations on Acid Rains in Northern Europe : A Discrete Time Iterative Process," LIDAM Discussion Papers CORE 1995056, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    • Handle: RePEc:cor:louvco:1995056
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    File URL: https://sites.uclouvain.be/core/publications/coredp/coredp1995.html
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    Cited by:

    1. Carlo Carraro & Johan Eyckmans & Michael Finus, 2006. "Optimal transfers and participation decisions in international environmental agreements," The Review of International Organizations, Springer, vol. 1(4), pages 379-396, December.
    2. Henry Tulkens, 2002. "On Cooperation in Musgravian Models of Externalities within a Federation," CESifo Working Paper Series 701, CESifo.
    3. Markowska, Agnieszka & Zylicz, Tomasz, 1999. "Costing an international public good: the case of the Baltic Sea," Ecological Economics, Elsevier, vol. 30(2), pages 301-316, August.

    More about this item

    Keywords

    acid rain; international negociations; financial transfers;
    All these keywords.

    JEL classification:

    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • D78 - Microeconomics - - Analysis of Collective Decision-Making - - - Positive Analysis of Policy Formulation and Implementation
    • F02 - International Economics - - General - - - International Economic Order and Integration
    • Q25 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Water

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