Unilateral Actions the Case of International Environmental Problems

When abatement costs are uncertain, but correlated, and a country becomes pri-vately informed that costs are low, then unilateral actions serve as a signalling devise to reveal low costs and unilateral actions have the potential to trigger positive responses abroad. However, the country engaging in unilateral actions is the one with the highest expectation about the other countries’ reactions, and it might suffer from an effect like the winners curse.

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Year of publication:	2003-04
Authors:	Brandt, Urs Steiner
Institutions:	Institut for Miljø og Erhvervsøkonomi, Syddansk Universitet
Subject:	International environmental problems \| unilateral reductions \| signal-ling costs

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Extent:	application/pdf
Series:	Working Papers.
Type of publication:	Book / Working Paper
Language:	English
Notes:	Number 40/03 48 pages
Classification:	Q28 - Government Policy ; H4 - Publicly Provided Goods ; D8 - Information and Uncertainty
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005609314