National reductions of CO2 emissions as a way to manage unilaterally the use of global environmental resources can be interpreted as the noncooperative provision of an international public good. This paper analyses two basic sources of inefficiency if countries abate their emissions...

The paper analyzes international environmental agreements that incorporate transfers from a group of industrialized countries to developing countries in a situation of asymmetric information. The framework of the analysis is a static model of transboundary pollution in which information on...