International Environmental Permit Trade and Debt: the Consequences of Country Sovereignty and Cross-Default Policies
Journal
Review of International Economics
Type
journal article
Date Issued
1995-02-01
Author(s)
Mohr, Ernst
Abstract
We investigate the joint occurrence of international intertemporal trade and international environmental-permit trade, both of which are subject to country sovereignty. Assuming that side payments cannot be made to keep a debtor country from terminating international environmental cooperation, we analyze the impact of these two trade opportunities on a debtor country's incentive to continue environmental cooperation. We also show how, by way of a suitable strategic linkage between debt and permit trade, the public good of ensuring continued environmental cooperation can be provided by the supply side of private international loans.
Language
English
HSG Classification
contribution to scientific community
Refereed
Yes
Publisher
Blackwell
Volume
3
Number
1
Start page
1
End page
19
Pages
19
Subject(s)
Division(s)
Eprints ID
40191