We develop a North-South model of foreign aid and cross-border pollution resulting from production activities in the recipient country. There is both private and public abatement of pollution, the latter being financed through emissions tax revenue and foreign aid. We characterise a Nash...

We obtain optimal emission levels and abatement expenditures in a finite-horizon transboundary pollution game with emission trading between two regions.We show that emission trading has significant impact on the optimal strategies and profits of the two regions. We find that cooperation between...

We obtain optimal emission levels and abatement expenditures in a finite-horizon transboundary pollution game with emission trading between two regions. We show that emission trading has significant impact on the optimal strategies and profits of the two regions. We find that cooperation between...

We explore the possibility of achieving a cooperative outcome when governments act non-cooperatively in a strategic environmental policy model where emission permit markets are linked. We introduce a specific distribution scheme of the permit revenues between the exporting countries so as to...