Maxium Victim Benefit: A Fair Division Process in Transboundary Pollution Problems

We introduce a side-payment scheme, maximum victim benefit, that promotes ‘stable’ international environmental agreements. In developing this scheme, we incorporate the equity position that victims of pollution should benefit from pollution control. The result is a scheme which picks a unique element in the core; it maximizes the benefits to the victims of pollution and ensures that polluters are willing to join the scheme. Copyright Kluwer Academic Publishers 1997