An analysis of SO2 negotiations between Finland and the Soviet Union

Veijo Kaitala, Matti Pohjola and Olli Tahvonen
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Veijo Kaitala: Helsinki University of Technology
Matti Pohjola: Research Institute of the Finnish Economy

Finnish Economic Papers, 1991, vol. 4, issue 2, 104-112

Abstract: This paper considers Finnish-Soviet environmental cooperation. It is shown that efficient cooperation on reducing sulphur emissions may entail financial transfers from Finland to the Soviet Union because marginal abatement costs are much lower there. Soviet emissions should be drastically reduced in Kola peninsula and Estonia. The analysis is based on a sulphur transportation model, on estimated regional abatement cost functions and on the 'revealed-preference' approach in estimating the damage costs from pollution.

Date: 1991
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Persistent link: https://EconPapers.repec.org/RePEc:fep:journl:v:4:y:1991:i:2:p:104-112

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