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The Abatement Market A Proposal for Environmental Cooperation among Asymmetric Countries

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  • Luciano Mendez
  • Rafael Trelles

Abstract

We present a model of interaction among technologically asymmetriccountries whose use of an open-access environmental resource generatesmutual externalities. We show that countries can improve bothenvironmental quality and their individual welfare levels by buying/sellingpollution abatement. This market mechanism, which reduces incentive forfree-riding, is more effective the larger the technological gap betweencountries. Copyright Kluwer Academic Publishers 2000

Suggested Citation

  • Luciano Mendez & Rafael Trelles, 2000. "The Abatement Market A Proposal for Environmental Cooperation among Asymmetric Countries," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 16(1), pages 15-30, May.
    • Handle: RePEc:kap:enreec:v:16:y:2000:i:1:p:15-30
    DOI: 10.1023/A:1008316806709
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    References listed on IDEAS

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    Cited by:

    1. Doruk Iris & Alessandro Tavoni, 2016. "Tipping Points and Loss Aversion in International Environmental Agreements," Working Papers 1603, Nam Duck-Woo Economic Research Institute, Sogang University (Former Research Institute for Market Economy).
    2. Brian Chi-ang Lin & Siqi Zheng & Doruk İriş, 2016. "Economic Targets And Loss-Aversion In International Environmental Cooperation," Journal of Economic Surveys, Wiley Blackwell, vol. 30(3), pages 624-648, July.

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