Carbon capture and storage and transboundary pollution: a differential game approach
We study the strategic behavior of two countries facing transboundary pollution under a differential game setting. In our model, the reduction of both pollution and CO2 concentration occur through the creation of pollution sinks, rather than through the adoption of cleaner technologies. To our knowledge, this is the first formal attempt to model carbon capture and storage. Furthermore, we provide the explicit short-run dynamics for this game with symmetric open-loop and a special Markovian Nash strategies. Furthermore, we analyze and compare these strategies and the games’ steady states along some balanced growth paths. Our results show that if the initial level of pollution is relatively high, state dependent emissions reductions can lead to higher overall environmental quality, hence, feedback strategy leads to less social waste.
|Date of creation:||2011|
|Contact details of provider:|| Postal: 162a avenue de la Faïencerie, L-1511 Luxembourg|
Phone: (+352) 46 66 44
Fax: (+352) 46 66 44 ext 633
Web page: http://wwwen.uni.lu/research/fdef/crea
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Hoel, Michael, 1991.
"Global environmental problems: The effects of unilateral actions taken by one country,"
Journal of Environmental Economics and Management,
Elsevier, vol. 20(1), pages 55-70, January.
- Hoel, M., 1989. "Global Environmental Problems: The Effects Of Unilateral Actions Taken By One Country," Memorandum 11/1989, Oslo University, Department of Economics.
- Matthias Kalkuhl & Ottmar Edenhofer & Kai Lessmann, 2015. "The Role of Carbon Capture and Sequestration Policies for Climate Change Mitigation," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 60(1), pages 55-80, January.
- Matthias Kalkuhl & Ottmar Edenhofer & Kai Lessmann, 2012. "The Role of Carbon Capture and Sequestration Policies for Climate Change Mitigation," CESifo Working Paper Series 3834, CESifo Group Munich.
- Geoffrey Heal & Nori Tarui, 2008. "Technology diffusion, abatement cost, and transboundary pollution," Working Papers 200803, University of Hawaii at Manoa, Department of Economics.
- Geoffrey Heal & Nori Tarui, 2008. "Technology Diffusion, Abatement Cost, and Transboundary Pollution," Working Papers 2008.96, Fondazione Eni Enrico Mattei.
- Dockner, Engelbert J. & Sorger, Gerhard, 1996. "Existence and Properties of Equilibria for a Dynamic Game on Productive Assets," Journal of Economic Theory, Elsevier, vol. 71(1), pages 209-227, October.
- Braden, John B. & Bromley, Daniel W., 1981. "The economics of cooperation over collective bads," Journal of Environmental Economics and Management, Elsevier, vol. 8(2), pages 134-150, June.
- Harford Jon D., 1993. "Improving on the Steady State in the State-Dependent Enforcement of Pollution Control," Journal of Environmental Economics and Management, Elsevier, vol. 24(2), pages 133-138, March.
- Surender Kumar & D.N. Rao, 2001. "Valuing The Beneficts of Air Pollution Abatement Using a Health Production Function A Case Study of Panipat Thermal Power Station, India," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 20(2), pages 91-102, October.
- Schumacher, Ingmar & Zou, Benteng, 2008. "Pollution perception: A challenge for intergenerational equity," Journal of Environmental Economics and Management, Elsevier, vol. 55(3), pages 296-309, May.
- Liang, X. & Reiner, D. & Gibbins, J. & Li, J., 2007. "Financing Capture Ready Coal-Fired Power Plants In China By Issuing Capture Options," Cambridge Working Papers in Economics 0761, Faculty of Economics, University of Cambridge.
- Panos Hatzipanayotou & Sajal Lahiri & Michael S. Michael, 2002. "Can cross-border pollution reduce pollution?," Canadian Journal of Economics, Canadian Economics Association, vol. 35(4), pages 805-818, November.
- Panos Hatzipanayotou & Sajal Lahiri & Michael S. Michael, 2000. "Can Cross-Border Pollution Reduce Pollution?," CESifo Working Paper Series 360, CESifo Group Munich.
- Wirl, Franz, 1994. "The Dynamics of Lobbying--A Differential Game," Public Choice, Springer, vol. 80(3-4), pages 307-323, September.
- Wipo, 2011. "Global Innovation Index 2011," WIPO Economics & Statistics Series, World Intellectual Property Organization - Economics and Statistics Division, number 2011:gii, June.
- Copeland, Brian R & Taylor, M Scott, 1995. "Trade and Transboundary Pollution," American Economic Review, American Economic Association, vol. 85(4), pages 716-737, September.
- Misiolek, Walter S. & Elder, Harold W., 1989. "Exclusionary manipulation of markets for pollution rights," Journal of Environmental Economics and Management, Elsevier, vol. 16(2), pages 156-166, March.
- Rubio, Santiago J. & Casino, Begona, 2002. "A note on cooperative versus non-cooperative strategies in international pollution control," Resource and Energy Economics, Elsevier, vol. 24(3), pages 251-261, June.
- Luisito Bertinelli & Benteng Zou, 2010. "Transboundary Pollution and abatement," CREA Discussion Paper Series 10-07, Center for Research in Economic Analysis, University of Luxembourg.
- Harford, Jon D., 1991. "Measurement error and state-dependent pollution control enforcement," Journal of Environmental Economics and Management, Elsevier, vol. 21(1), pages 67-81, July.
- Brian R. Copeland & M. Scott Taylor, 1994. "North-South Trade and the Environment," The Quarterly Journal of Economics, Oxford University Press, vol. 109(3), pages 755-787.
- Chow, Gregory C., 1997. "Dynamic Economics: Optimization by the Lagrange Method," OUP Catalogue, Oxford University Press, number 9780195101928.
- N/A, 2011. "Multipolarity: The New Global Economy," Foreign Trade Review, , vol. 46(3), pages 89-106, October.
- Bertinelli, Luisito & Strobl, Eric & Zou, Benteng, 2008. "Economic development and environmental quality: A reassessment in light of nature's self-regeneration capacity," Ecological Economics, Elsevier, vol. 66(2-3), pages 371-378, June.
- Panos Hatzipanayotou & Sajal Lahiri & Michael S. Michael, 2005. "Reforms of Environmental Policies in the Presence of Cross-border Pollution and Public-Private Clean-up," Scandinavian Journal of Economics, Wiley Blackwell, vol. 107(2), pages 315-333, 06.
- International Energy Agency, 2010. "Carbon Capture and Storage: Model Regulatory Framework," IEA Energy Papers 2010/12, OECD Publishing.
- Stokey, Nancy L, 1998. "Are There Limits to Growth?," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 39(1), pages 1-31, February.
- Franklin Allen & Elena Carletti, 2011. "The Global Financial Crisis," Central Banking, Analysis, and Economic Policies Book Series,in: Luis Felipe Céspedes & Roberto Chang & Diego Saravia (ed.), Monetary Policy under Financial Turbulence, edition 1, volume 16, chapter 2, pages 023-047 Central Bank of Chile.
- Franklin Allen & Elena Carletti, 2010. "The Global Financial Crisis," Working Papers Central Bank of Chile 575, Central Bank of Chile.
- Dockner,Engelbert J. & Jorgensen,Steffen & Long,Ngo Van & Sorger,Gerhard, 2000. "Differential Games in Economics and Management Science," Cambridge Books, Cambridge University Press, number 9780521637329, September.
- Dockner Engelbert J. & Van Long Ngo, 1993. "International Pollution Control: Cooperative versus Noncooperative Strategies," Journal of Environmental Economics and Management, Elsevier, vol. 25(1), pages 13-29, July.
- Nedim M. Alemdar & Sheyla Ozyildirim, 2002. "Knowledge spillovers, transboundary pollution, and growth," Oxford Economic Papers, Oxford University Press, vol. 54(4), pages 597-616, October. Full references (including those not matched with items on IDEAS)