On the core of an economy with multilateral and multidimensional environmental externalities

Charles Figuieres and Magali Verdonck

No 2003004, LIDAM Discussion Papers CORE from Université catholique de Louvain, Center for Operations Research and Econometrics (CORE)

Abstract: For simple economic models of transfrontier pollution, Chander and Tulkens (1995) and (1997) have offered a formula for transfers to sustain international cooperation on a voluntary basis and which deter coalitionnal free-riding under some reasonable behaviours of countries not in the coalition. Their scheme rests on the assumption that pollution is a scalar. Relaxing this assumption, interesting interactions among pollutants arise that call for a new formula. In this paper we extend Chander and Tulkens formula for this more realistic multidimensional context, and thereby enhance the pratical and theoreticalrelevance of their seminal analysis.

Keywords: international pollutions; Nash equilibrium; partial agreement Nash equilibrium; international transfers; [gamma]-core (search for similar items in EconPapers)
Date: 2003-01
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Related works:
Journal Article: On the Core of an Economy with Multilateral and Multidimensional Environmental Externalities (2003)
Working Paper: On the Core of an Economy with Multilateral and Multidimensional Environmental Externalities (2003)
Working Paper: On the core of an economy with multilateral and multidimensional environmental externalities (2003)
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