The Central and Eastern European countries significantly reduced their CO<indice traitementparticulier="non">2</indice> emissions between 1995 and 2003. Was this emission reduction just the fortuitous result of the major economic transformation undergone by countries in transition? Or is it rather a result of more stringent environmental...

We model environmental interaction among countries as a policy game where governments in each country use quotas or taxes as strategy variables. The environmental policy has a triple role to play: targeting domestic emissions, providing strategic advantages for domestic firms and targeting...