Boadway, Robin; Song, Zhen; Tremblay, Jean-François - In: European Journal of Political Economy 27 (2011) 2, pp. 352-368
We characterize a mechanism for reducing pollution emissions in which countries, acting non-cooperatively, commit to matching each others' abatement levels and may subsequently engage in emissions quota trading. The mechanism leads to an efficient level of emissions, and if the matching...