This article deals with cooperation issues in international pollution problems in a two di- mensional dynamic framework implied by the accumulation of the pollutant and of the capital goods. Assuming that countries do reevaluate at each period the advantages to cooperate or not given the current...

This article deals with cooperation issues in international pollution problems in a two di- mensional dynamic framework implied by the accumulation of the pollutant and of the capital goods. Assuming that countries do reevaluate at each period the advantages to cooperate or not given the current...

One examines strategies of pollution control through choices between taxes and tradable permits, supposed to be decided at several time periods t1, t2, . . . , tI. At each of these time periods, the choice depends on the solution of a dynamic programming problem involving the expectations of the...