A Scheme for Sharing the Costs of Reducing Sulfur Emissions in Europe

Bergman, L., Cesar, H., & Klaassen, G. (1990). A Scheme for Sharing the Costs of Reducing Sulfur Emissions in Europe. IIASA Working Paper. IIASA, Laxenburg, Austria: WP-90-005

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Abstract

A particular scheme for sharing the costs of controlling sulfur emissions in Europe which is beneficial for all countries and ensures cost-efficiency is examined. The contribution of each country to the scheme depends on its gain from cooperation. An example indicates that these gains can be considerable for each country. However, in reporting cost functions, in specifying deposition targets, or both, it is possible to deceive. Some countries might even gain more from cooperation by leaving specific countries outside the cooperation. Even with deceiving it might still be beneficial for countries to cooperate. Moreover, both cost functions and deposition targets could be checked.

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