This paper models global environmental policy in a stochastic setting: reducing pollution not only reduces expected environmental damage but also its spread. The national incentives to cooperate are analysed under adverse conditions: expected payoffs are taken to have the structure of a (static)...

This article analyzes the output, abatement, and investment decisions made by a monopolistic polluter under environmental liability law. The model applied considers both integrated and end-of-pipe abatement technologies. We find that in the case of fixed technology, in many instances negligence...

Two countries, differing with respect to opportunity cost of abatement and evironmental damage cost, negotiating joint emission reductions are considered. The bargaining process is analyzed in two policy regimes: Emission tax and transferable discharge permits. Emissions and welfare of the...