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On the core of an economy with multilateral and multidimensional environmental externalities

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  • FIGUIÈRES, Charles
  • VERDONCK, Magali

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.
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Suggested Citation

  • FIGUIÈRES, Charles & VERDONCK, Magali, 2003. "On the core of an economy with multilateral and multidimensional environmental externalities," LIDAM Reprints CORE 1635, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    • Handle: RePEc:cor:louvrp:1635
    Note: In : Economics Bulletin, 3(3), 1-10, 2003
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    Cited by:

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    2. 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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