ABSTRACT
This chapter analyses and calculates nitrogen reductions and net benefits under different cooperative and non-cooperative scenarios. Since there is no Baltic Sea public body which can enforce pollutant reductions among the Baltic Sea countries, a substantial improvement in the biological condition of the Sea relies on the individual country's ability and willingness to make voluntary agreements. One way of approaching the potential for agreement is to look at the national gains and losses from cooperation and non-cooperation. In Wulff, nitrogen marine transports between three major Baltic Sea basins – the Baltic Proper, Bothnian Sea, and Bothnian Bay – have been calculated. According to the results, 20 per cent of the nitrogen load to the Baltic Proper is transported to the northern basins – the Bothnian Sea and Bothnian Bay. The chapter presents the results from the estimation of optimal net benefits under different bargaining solutions, such as, 'full cooperation', 'Pareto-efficient' outcome and 'Nash equilibrium'.
