Will economic growth inevitably degrade the environment, throughout development?This paper presents a simple household-choice framework that emphasizes the tradeoffbetween pollution-causing consumption and pollution-reducing abatement expenditures.The framework yields a simple explanation for...

"We explore the efficiency and equity resulting from allocation of a fixed resource within a bargaining institution, using a modification of the Ultimatum Game with asymmetric productivity and a surplus-sharing step that permits us to explore trust. Sharing allows pie division independent of pie...