Regional Versus Multilateral Solutions to Transboundary Environmental Problems: Insights from the Southeast Asian Haze

Li Lin Chang and Ramkishen Rajan

The World Economy, 2001, vol. 24, issue 5, 655-671

Abstract: At an analytical level, economists have often categorised the international dimensions of environmental problems and policies as being national (or competitiveness), psychological (as opposed to physical) and transboundary (global) in nature. Focusing on transboundary pollution problems, the reasons why a multilateral approach among sovereign nations to solve such global externalities may be difficult are discussed within a simple analytical framework. The paper examines the Southeast Asian experience at a regional approach to tackling the haze problem due to the Indonesian forest fires. It goes on to explore multilateral policy options and constraints for dealing with such transboundary environmental pollution problems.

Date: 2001
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