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We consider the effect of an increase in the risk from pollution. We show that in the case of a flow pollution, when … the number of players is sufficiently large, the result of Bramoulle and Treich, showing that a marginal increase of risk … in the neighborhood of a risk-free world is welfare-improving, holds even when we consider non-marginal increases in risk …
Persistent link: https://www.econbiz.de/10011183755
This paper surveys three areas of applications of dynamic games: (i) transboundary pollution, (ii) exploitation of transboundary resources, and (iii) problems of the developing world: capital flights, foreign aid, war and peace. A refresher section introduces the basic ideas and solution...
Persistent link: https://www.econbiz.de/10010698743
This article provides a survey of dynamic models of international environmental agreements (IEAs). The focus is on environmental problems that are caused by a stock pollutant as are the cases of the acid rain and climate change. For this reason, the survey only reviews the literature that...
Persistent link: https://www.econbiz.de/10010548942
This article provides a survey of dynamic models of international environmental agreements (IEAs). The focus is on environmental problems that are caused by a stock pollutant as are the cases of the acid rain and climate change. For this reason, the survey only reviews the literature that...
Persistent link: https://www.econbiz.de/10010696389
Abstract: This paper shows that, if countries are farsighted when deciding whether to defect from a coalition, then the implementation of cleaner technologies may jeopardize the chances of reaching an international environmental agreement. The grand coalition may be destabilized by the...
Persistent link: https://www.econbiz.de/10011090691
In the absence of a successful international cooperative agreement over the control of emissions there is a growing interest in the role that clean technologies may play to alleviate the climate change problem. Within a non-cooperative transboundary pollution game, we investigate, analytically...
Persistent link: https://www.econbiz.de/10011091386
Abstract: This paper shows that, if countries are farsighted when deciding whether to defect from a coalition, then the implementation of cleaner technologies may jeopardize the chances of reaching an international environmental agreement. The grand coalition may be destabilized by the...
Persistent link: https://www.econbiz.de/10011093149
Within a non-cooperative transboundary pollution game, we investigate the impact of the adoption of a cleaner technology (i.e., a decrease in the emission to output ratio). We show that countries may respond by increasing their emissions resulting in an increase in the stock of pollution that...
Persistent link: https://www.econbiz.de/10010753153
This paper studies a transboundary pollution problem between two neighbour regions as a dynamic game. These two regions do not only share an environmental problem but they are also engaged in interregional trade. A good produced in one region is traded to the other which uses it as an input....
Persistent link: https://www.econbiz.de/10005081032
We study the impact of farsightedness in a transboundary pollution game; i.e. the ability of a country to forecast the relationship between current emissions and future levels of pollution and thus on future damages. We show that when all countries are farsighted their payos are larger than when...
Persistent link: https://www.econbiz.de/10010616507