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India and Global Climate Change by Michael A. Michael A. Toman

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CHAPTER 12

A Noncooperative Theory ofEmissions-Cap Determination

Sudhir A. Shah

AMONG THE MOST CONTENTIOUS contemporary international issues involving economics are the problems of trans-border externalities caused by environmental pollution such as acid rain.1 A particular problem of this genre that has attracted widespread interest is the phenomenon of global warming caused by the accumulation of greenhouse gas (GHG) pollution in the atmosphere, henceforth referred to as carbon accumulation. It is widely believed that carbon accumulation will lead to a variety of physical changes that will have significant deleterious effects on most human societies. Unlike phenomena such as acid rain, which concern small numbers of adjoining countries, the ...

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