We study how spillovers from water pollution cleanup in the Ganges affect social welfare in an aggregate economy consisting of Kanpur and Varanasi, two cities through which this river flows. We view pollution cleanup in both cities as a local public good and point out that, if Kanpur cleans up...

We analyze the design of international environmental agreements (IEAs) for developing countries (DCs) by a supra-national governmental authority (SNGA).We focus on the interaction between an asymmetrically informed SNGA, national governments, and polluting firms in DCs. Two scenarios are...

We study environmental policy in a two nation world in which there is strategic behavior by governments and polluting firms. Two issues are analyzed. First, the conditions under which the conduct of unilateral environmental policy by a nation in a Bertrand game will immiserize that nation, are...