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Transboundary Pollution and abatement

Author

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  • Luisito Bertinelli

    (CREA, University of Luxembourg)

  • Benteng Zou

    (CREA, University of Luxembourg)

Abstract

Adopting clean technologies is a long term process which requires structural changes in production and consumption habits. In the present paper, we focus more on short term issues related to pollution reduction and analyze a pollution abatement game in a 2-country dynamic model. Transboundary pollution is treated as a common state variable while pollution reduction is reached via abatement rather than the adoption of cleaner technologies. Symmetric open-loop and Markovian Nash equilibrium are studied and compared as well as the analysis of Markovian strategies of more than two countries case around the steady state.

Suggested Citation

  • Luisito Bertinelli & Benteng Zou, 2010. "Transboundary Pollution and abatement," DEM Discussion Paper Series 10-07, Department of Economics at the University of Luxembourg.
    • Handle: RePEc:luc:wpaper:10-07
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    File URL: http://wwwfr.uni.lu/content/download/28784/339994/file/2010_07-Transboundary%20Pollution%20and%20abatement.pdf
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    References listed on IDEAS

    as
    1. Bertinelli, Luisito & Strobl, Eric & Zou, Benteng, 2008. "Economic development and environmental quality: A reassessment in light of nature's self-regeneration capacity," Ecological Economics, Elsevier, vol. 66(2-3), pages 371-378, June.
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    Cited by:

    1. Bertinelli, Luisito & Camacho, Carmen & Zou, Benteng, 2014. "Carbon capture and storage and transboundary pollution: A differential game approach," European Journal of Operational Research, Elsevier, vol. 237(2), pages 721-728.
    2. Luisito Bertinelli & Amer Tabakovic & Luca Marchiori & Benteng Zou, 2015. "Transboundary Pollution Abatement: The Impact of Unilateral Commitment in Differential Games," DEM Discussion Paper Series 15-02, Department of Economics at the University of Luxembourg.

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