Transboundary Pollution and abatement

Luisito Bertinelli and Benteng Zou

DEM Discussion Paper Series from Department of Economics at the University of Luxembourg

Abstract: Adopting clean technologies is a long term process which requires structural changes in production and consumption habits. In the present paper, we focus more on short term issues related to pollution reduction and analyze a pollution abatement game in a 2-country dynamic model. Transboundary pollution is treated as a common state variable while pollution reduction is reached via abatement rather than the adoption of cleaner technologies. Symmetric open-loop and Markovian Nash equilibrium are studied and compared as well as the analysis of Markovian strategies of more than two countries case around the steady state.

Date: 2010
New Economics Papers: this item is included in nep-ene, nep-env, nep-gth and nep-res
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:luc:wpaper:10-07

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