We examine the choice of policy instruments (price, quantity or a mix of the two) when two pollutants are regulated and firms' abatement costs are private information. Whether abatement efforts are complements or substitutes is key determining the choice of policies. When pollutants are...

By signing a water sharing agreement (WSA), countries agree to release an amount of river water in exchange for a negotiated compensation. We examine the vulnerability of such agreements to reduced water flows. Among all WSAs that are acceptable to riparian countries, we find out the one which...