ABSTRACT

This chapter focuses on the state of information about the atmospheric transportation of sulphur, the damage caused by sulphur depositions and the costs of reducing sulphur emissions. In general one should expect that the environmental damage caused by sulphur depositions is an increasing function of the level of deposition per area unit. As was mentioned before Karl-Goran Maler compared Nash equilibrium in sulphur emission control measures for the European countries and the corresponding full cooperative solution. The chapter utilizes an extremely simple game-theoretic framework to point out possible obstacles to international coordination of environmental policies. In the public debate on the acidification problem it has been proposed that a European Fund to finance emission control measures should be established. However, as there is reason to believe that there are gains to be made from international cooperation in the field of environmental policy it is important to design an institutional framework that is conducive for such cooperation.