Control of Reciprocal Transboundary Pollution and Joint Implementation

Abstract

International conventions to protect the environment usually have the form of commitments to reduce emission on a reciprocal basis. This chapter analyzes the conditions under which a Pareto-efficient agreement to reduce emissions reciprocally can be improved by joint implementation. Joint implementation is conceived as a second phase in which obligations to reduce emissions, which were agreed upon in the first phase, are exchanged for money. The scope for reciprocal reduction of emissions and for joint implementation are discussed first for a case where each government cares for its national environment only, and next for the case where a government is also willing to pay for improvement of the environment abroad.