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Unilateral Actions the Case of International Environmental Problems

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  • Urs Steiner Brandt

Abstract

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.

Suggested Citation

  • Urs Steiner Brandt, 2003. "Unilateral Actions the Case of International Environmental Problems," Working Papers 40/03, University of Southern Denmark, Department of Sociology, Environmental and Business Economics.
    • Handle: RePEc:sdk:wpaper:40
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    References listed on IDEAS

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    Keywords

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    JEL classification:

    • Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy
    • H4 - Public Economics - - Publicly Provided Goods
    • D8 - Microeconomics - - Information, Knowledge, and Uncertainty

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