Title: Nash implementation of a proportional solution to international pollution control problems
Authors: Eyckmans, Johan # ×
Issue Date: Jul-1997
Publisher: Academic press inc jnl-comp subscriptions
Series Title: Journal of environmental economics and management vol:33 issue:3 pages:314-330
Abstract: For a very general class of pollution control models involving strictly quasi-concave utility functions over consumption and environmental quality and strictly convex emission abatement cost functions, a proportional cost sharing mechanism is presented inspired by the ratio equilibrium introduced by M. Kaneko [1977, J. Econom. Theory 16, 123-136]. It is shown that the proportional solution yields a cost efficient allocation of abatement efforts and that the resulting utility imputation always lies in the stand alone core of the cost sharing game. In order to decentralize the proportional cost sharing equilibrium, a financial compensation mechanism implementing the proportional solution in complete information Nash equilibrium is presented. (C) 1997 Academic Press.
ISSN: 0095-0696
Publication status: published
KU Leuven publication type: IT
Appears in Collections:Research Center of Energy, Transport and Environment, Leuven
Research Centre for Economics and Corporate Sustainability, Campus Brussels
Faculty of Economics and Business (FEB) - miscellaneous
× corresponding author
# (joint) last author

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