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An n-country model of strategic emissions abatement: feedback strategies and cooperation


  • Eric Bahel


The present paper proposes a dynamic framework for the analysis of emissions abatement by different countries. Unlike many related works, it emphasizes the non-cooperative aspects of this issue. We derive the feedback Nash equilibrium as well as the cooperative emissions paths. Under the cooperative scenario, pollution is always lower: the international agency imposes lower emissions to the countries in early periods. Surprisingly enough, emissions might be higher in very distant periods under the cooperative scenario. A transfer scheme allowing to achieve global effciency is proposed.

Suggested Citation

  • Eric Bahel, 2010. "An n-country model of strategic emissions abatement: feedback strategies and cooperation," Working Papers e07-25, Virginia Polytechnic Institute and State University, Department of Economics.
  • Handle: RePEc:vpi:wpaper:e07-25

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    References listed on IDEAS

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    emissions; strategic abatement; pollution stock; feedback (closed-loop) Nash equilibrium; cooperation; transfers.;

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