While an international agreement over the reduction of greenhouse gases (GHGs) emissions proves to be elusive, there is a large and growing support for investment in developing more effective technologies to adapt to climate change. We show that an increase in effectiveness of adaptation will...

In this article, we study cross-border externalities in a game played by two principal-agent pairs with adverse selection. Each firm/agent is located in one country and generates pollution by producing complementary or substitute goods, sold on a common market. A fraction of pollution is...

International environmental agreements aiming at correcting negative externalities generated by transboundary pollution are difficult to achieve for many reasons. Important obstacles arise from asymmetry in costs and benefits, and instability may occur due to the fact that coalitions of...