We characterize a mechanism for reducing pollution emissions in which countries,　acting non-cooperatively, commit to match each others’ abatement levels and may　subsequently engage in emissions quota trading. The mechanism leads to an efficient level of emissions, and if the matching...

In this paper, we characterize a mechanism for reducing pollution emis sions in which countries, acting non-cooperatively, commit to match each others' abatement levels and may subsequently engage in emissions quota trading. The an alysis shows that the mechanism leads to efficient outcomes. The...

In this paper, we characterize a mechanism for reducing pollution emissions in which countries, acting non-cooperatively, commit to match each others' abatement levels and may subsequently engage in emissions quota trading. The analysis shows that the mechanism leads to efficient outcomes. The...