This paper analyzes the implications of international knowledge diffusion for the costs of Baltic-wide policy to reduce nutrient emissions to the Baltic Sea. In particular, the impact on the distribution of abatement and costs over time and space is investigated, and the relative importance of...

Due to eutrophication caused by heavy loads of nitrogen and phosphorus, the biological conditions of the Baltic Sea have been disturbed: large sea bottom areas without any biological life, low stocks of cods, and toxic blue green algaes. It is recognized that the nitrogen and phosphorus loads to...

Unilateral abatement is sometimes advocated in order to set a good example that will make other countries follow. The aim of this paper is to investigate whether existence of correlated cost uncertainty provides an incentive for a country to undertake unilateral abatement. The theoretical model...