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Voluntary Cutbacks and Pretreaty Behavior: the Helsinki Protocol and Sulfur Emissions

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  • James C. Murdoch

    (University of Texas-Dallas)

  • Todd Sandler

    (Iowa State University)

Abstract

This article formulates a noncooperative game model of sulfur emission reductions that accounts for the transboundary transport of emissions. Based on this model, European demand for emission reductions is derived from 1980 to 1985. In the early 1980s, information on sulfur emissions and depositions became available and allowed nations to assess their desired levels of emission reductions. We estimate European demand for cutbacks prior to the Helsinki Protocol's mandated reductions by using spatially autoregressive techniques. This demand depends on the price of emission cutbacks, national income, self-inflicted damage, baseline emission levels, and freedoms. Qualitative analysis lends support to the noncooperative depiction and our characterization of the Protocol as reflecting actions that many nations were already taking.

Suggested Citation

  • James C. Murdoch & Todd Sandler, 1997. "Voluntary Cutbacks and Pretreaty Behavior: the Helsinki Protocol and Sulfur Emissions," Public Finance Review, , vol. 25(2), pages 139-162, March.
    • Handle: RePEc:sae:pubfin:v:25:y:1997:i:2:p:139-162
    DOI: 10.1177/109114219702500201
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    References listed on IDEAS

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    2. Alfred Endres & Michael Finus & Frank Lobigs, 2000. "Symbolische Umweltpolitik im Zeitalter der Globalisierung? – Zur Effektivität Internationaler Umweltverträge aus Ökonomischer Sicht," Perspektiven der Wirtschaftspolitik, Verein für Socialpolitik, vol. 1(1), pages 73-91, February.
    3. Bohringer, Christoph & Vogt, Carsten, 2004. "The dismantling of a breakthrough: the Kyoto Protocol as symbolic policy," European Journal of Political Economy, Elsevier, vol. 20(3), pages 597-617, September.
    4. Sarah Al Doyaili & Leo Wangler, 2013. "International climate policy: does it matter? An empirical assessment," Journal of Environmental Economics and Policy, Taylor & Francis Journals, vol. 2(3), pages 288-302, November.
    5. Juan‐Carlos Altamirano‐Cabrera & Michael Finus & Rob Dellink, 2008. "Do Abatement Quotas Lead To More Successful Climate Coalitions?," Manchester School, University of Manchester, vol. 76(1), pages 104-129, January.
    6. Antonio Páez & Takashi Uchida & Kazuaki Miyamoto, 2002. "A General Framework for Estimation and Inference of Geographically Weighted Regression Models: 2. Spatial Association and Model Specification Tests," Environment and Planning A, , vol. 34(5), pages 883-904, May.
    7. Thijs Dekker & Herman R.J. Vollebergh & Frans P. de Vries & Cees A. Withagen, 2009. "Inciting Protocols - How International Environmental Agreements Trigger Knowledge Transfers," Tinbergen Institute Discussion Papers 09-060/3, Tinbergen Institute, revised 29 Nov 2010.
    8. Carsten Helm & Detlef Sprinz, 2000. "Measuring the Effectiveness of International Environmental Regimes," Journal of Conflict Resolution, Peace Science Society (International), vol. 44(5), pages 630-652, October.
    9. Hilary Sigman, 2002. "International Spillovers and Water Quality in Rivers: Do Countries Free Ride?," American Economic Review, American Economic Association, vol. 92(4), pages 1152-1159, September.
    10. McWhinnie, Stephanie F., 2009. "The tragedy of the commons in international fisheries: An empirical examination," Journal of Environmental Economics and Management, Elsevier, vol. 57(3), pages 321-333, May.
    11. Michael Finus & Stefan Maus, 2008. "Modesty May Pay!," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 10(5), pages 801-826, October.
    12. Paolo Pertile & Simona Gamba & Martin Forster, 2018. "Free-Riding in Pharmaceutical Price Regulation: Theory and Evidence," Discussion Papers 18/04, Department of Economics, University of York.
    13. Finus, Michael & Tjotta, Sigve, 2003. "The Oslo Protocol on sulfur reduction: the great leap forward?," Journal of Public Economics, Elsevier, vol. 87(9-10), pages 2031-2048, September.
    14. Richard Perkins & Eric Neumayer, 2008. "Fostering Environment Efficiency through Transnational Linkages? Trajectories of CO2 and SO2, 1980–2000," Environment and Planning A, , vol. 40(12), pages 2970-2989, December.
    15. Emilie M. Hafner-Burton & Jana von Stein & Erik Gartzke, 2008. "International Organizations Count," Journal of Conflict Resolution, Peace Science Society (International), vol. 52(2), pages 175-188, April.

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