Article (Scientific journals)
The Impact of Unilateral Commitment on Transboundary Pollution
Bertinelli, Luisito; Marchiori, Luca; Tabakovic, Amer et al.
2018In Environmental Modeling and Assessment, 23, p. 25-37
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Keywords :
heterogeneous strategies; differential games; transboundary pollution
Abstract :
[en] To reach a common target of environmental quality, countries can choose to commit to a stream of pollution abatement right from the beginning of the game or decide upon abatement at each moment of time. Though most of the previous literature studies homogeneous strategies where no country or all countries commit to a (same) predefined policy, reality goes along a different way: some countries make more efforts than others to reduce pollutant emission. The main novelty of this paper resides in the introduction of this kind of heterogeneous strategic behavior currently observed among large pollution nations. We find that the pollution level can be lower under heterogeneous than under homogeneous strategies. A stringent environmental quality target will induce the committed player to produce an abatement effort that more than compensates the free-riding attitude of the non-committed player.
Disciplines :
Special economic topics (health, labor, transportation...)
Author, co-author :
Bertinelli, Luisito ;  University of Luxembourg > Faculty of Law, Economics and Finance (FDEF) > Center for Research in Economic Analysis (CREA)
Marchiori, Luca;  Central Bank of Luxembourg
Tabakovic, Amer
Zou, Benteng  ;  University of Luxembourg > Faculty of Law, Economics and Finance (FDEF) > Center for Research in Economic Analysis (CREA)
External co-authors :
no
Language :
English
Title :
The Impact of Unilateral Commitment on Transboundary Pollution
Publication date :
2018
Journal title :
Environmental Modeling and Assessment
ISSN :
1420-2026
eISSN :
1573-2967
Publisher :
Springer, Dordrecht, Netherlands
Volume :
23
Pages :
25-37
Peer reviewed :
Peer Reviewed verified by ORBi
Available on ORBilu :
since 04 May 2017

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