Jc. Murdoch et T. Sandler, VOLUNTARY CUTBACKS AND PRETREATY BEHAVIOR - THE HELSINKI PROTOCOL ANDSULFUR EMISSIONS, Public finance quarterly, 25(2), 1997, pp. 139-162
This article formulates a noncooperative game model of sulfur emission
reductions that accounts for the transboundary transport of emissions
. Bared on this model, European demand for emission reductions is deri
ved from 1980 to 1985. In the early 1980s, information on sulfur emiss
ions and depositions became available and allowed nations to assess th
eir desired levels of emission reductions. We estimate European demand
for cutbacks prior to the Helsinki Protocol's mandated reductions by
using spatially autoregressive techniques. This demand depends on the
price of emission cutbacks, national income, self-inflicted damage, ba
seline emission levels, and freedoms. Qualitative analysis lends suppo
rt to the noncooperative depiction and our characterization of the Pro
tocol as reflecting actions that many nations were already taking.