We characterize a mechanism for reducing pollution emissions in which countries, acting non-cooperatively, commit to match each others' abatement levels and may subsequently engage in emissions quota trading. The mechanism leads to an efficient level of emissions, and if the matching abatements...

We characterize a mechanism for reducing pollution emissions in which countries,　acting non-cooperatively, commit to match each others’ abatement levels and may　subsequently engage in emissions quota trading. The mechanism leads to an efficient level of emissions, and if the matching...

This paper examines various circumstances under which decentralized pollution policies can be efficient both in federal settings and in multi-region settings with labor mobility. We consider a model in which pollution control policies are set by regional governments non-cooperatively and...