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Unilateral actions as signals of high damage costs: distorting pre-negotiations emissions in international environmental problems
2013
Environmental Economics
In multilateral negotiations between nations on problems of global pollution, associated national actions to control pollution can be seen as a complex international public good. Such actions are costly and incentives to pass the main burden of reduction to other countries therefore exist. The authors show that when governments possess private information about national damage costs, signalling through emission levels may occur, and a variety of credible actions that manipulates emissions
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