Transboundary pollution in the black sea : comparison of institutional arrangements
This paper analyses the transboundary pollution between Romania and Ukraine, coastal states along the Black Sea, and studies the welfare consequences of institutional arrangements for controlling this problem. To achieve this goal, we use a dynamic and strategic framework. We compare in terms of total welfare for two countries a first-best case with three different institutional arrangements : the noncooperative game of countries, the uniform emission policy and the constant emission policy as proposed by the Black Sea Commission. Our findings indicate that the noncooperative game provides a better level of total welfare than the other rules.
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