Unilateral Actions the Case of International Environmental Problems
When abatement costs are uncertain, but correlated, and a country becomes pri-vately informed that costs are low, then unilateral actions serve as a signalling devise to reveal low costs and unilateral actions have the potential to trigger positive responses abroad. However, the country engaging in unilateral actions is the one with the highest expectation about the other countries’ reactions, and it might suffer from an effect like the winners curse.
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Paper provided by University of Southern Denmark, Department of Environmental and Business Economics in its series Working Papers with number
40/03.
| Length: | 48 pages |
| Date of creation: | Apr 2003 |
| Handle: | RePEc:sdk:wpaper:40 |
| Contact details of provider: | Postal: Niels Bohrs Vej 9, 6700 Esbjerg Phone: (+45) 6550 1000 Fax: (+45) 6550 1091 Web page: http://www.sam.sdu.dk/ime Email: More information through EDIRC
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References listed on IDEAS
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