INCOMPLETE INTERNATIONAL-COOPERATION TO REDUCE CO2 EMISSIONS - THE CASE OF PRICE-DISCRIMINATION

This paper analzyes the effect of introducing a fuel tax in some count ries, but not all, when the world fuel market is monopolistic. Based o n the observation that price discrimination becomes possible in these circumstances, it is shown that the fuel price in countries not levyin g the tax may increase, in contrast to common views. (C) 1994 Academic Press, Inc.