ABSTRACT
Transboundary air pollution problems have received increased attention in environmental economic research. For example, Maler [7] has studied the eco nomic rationale of the sulfur agreement concluded between the European coun tries. He found that the usual form of international agreement whereby countries have agreed to implement uniform sulfur emission reductions leads to abatement costs that are much higher than the cost-effective solution (for earlier studies of transfrontier pollution, see [2, 8]).
