MODELLING TRANSBOUNDARY POLLUTION

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The purpose of this paper is to give an overview of the economic literature on transboundary pollution. In particular the focus is 011 the most recent literature which incorporates behavioral assumptions with the help of game theory. In the first section the general context is introduced. and particular problems pointed out. Next, the various game solution concepts which have been evaluated in the transboundary pollution context are depicted. In the last part, the issue of free riding concerning transboundary pollution abatement is analysed.

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