The Cost-Effectiveness of Different Solutions to the European Sulpher Problem

Karl-Goran Maler and Clas Olsson

European Review of Agricultural Economics, 1990, vol. 17, issue 2, 153-66

Abstract: In this article, the authors represent a simple model of the European sulphur problem. The model comprises twenty European countries. Each country is assumed to have a deposition target, which is set in such a way that the annual deposition per unit area does not exceed a "critical load." The authors use this model to calculate the total costs of fulfilling the targets under different assumptions about the behavior of the countries. It is shown that, given an assumption about myopic noncooperative behavior on the part of each country, there will be substantial cost savings if the countries agree to cooperate on a cost-effective solution instead. However, when the countries are assumed to be rational and well informed, there will only be small costs savings from cooperation. Copyright 1990 by Oxford University Press.

Date: 1990
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European Review of Agricultural Economics is currently edited by Timothy Richards, Salvatore Di Falco, Céline Nauges and Vincenzina Caputo

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