Under the Kyoto Protocol, industrialized countries committed to emission reductions may fullfil part of their obligations by implementing emission reduction projects in developing countries. In doing so, they make use of the so-called Clean Development Mechanism (CDM). Two important issues...

This paper proposes a game theoretical approach of internationalnegotiations on transboundary pollution. This approach is distinguished bya discrete time formulation and by a suitable formulation of the localinformation assumption on cost and damage functions: at each stage of thenegotiation,...

Since the signing of the Kyoto Protocol, future commitments are likely to beframed in terms of tradable quotas. The discussions on the allocation of thequotas among countries will be based – at least partly – on rulescorresponding to a certain conception of equity. For instance,...