Environmental and Resource Economics

, Volume 31, Issue 1, pp 21–34

Piercing the Veil of Uncertainty in Transboundary Pollution Agreements

Article

Abstract

This paper addresses the question of how uncertainty in costs and benefits affects the difficulty of reaching a voluntary agreement among sovereign states. A measure of “difficulty” is constructed related to side-payments necessary to make an agreement a Pareto-improving move. Using a simple model, it is shown that uncertainty actually makes agreement easier.

Keywords

international environmental agreements pollution side-payments transboundary uncertainty treaties 

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Copyright information

© Springer 2005

Authors and Affiliations

  1. 1.Department of Economics and Bren School of Environmental Science and ManagementUniversity of CaliforniaSanta BarbaraUSA

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