International environment conventions: The case of uniform reductions of emissions

摘要: Several serious environmental problems have a global character. International cooperation to reduce emissions for this type of often takes the form an agreement among cooperating countries cut back by uniform percent rate compared with some base year. This agreements has two disadvantages. In first place, it is well known from economics that equal percentage reductions different sources usually gives inefficient outcome, in sense same goals could be achieved at lower costs through distribution emission reductions. A second problem not all will find their interest participate such agreements. paper, assumed set which endogenously determined, country participating provided makes better off than would been situation without any agreement. The reduction emissions. opinions about what should be. outcome determined median countries. assumptions above lead particular equilibrium, but cooperate. equilibrium also derived. best optimum within context simple numerical example.