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Maxium Victim Benefit: A Fair Division Process in Transboundary Pollution Problems

Author: van Egteren H.   Tang J.  

Publisher: Springer Publishing Company

ISSN: 0924-6460

Source: Environmental and Resource Economics, Vol.10, Iss.4, 1997-12, pp. : 363-386

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Abstract

We introduce a side-payment scheme, maximum victim benefit, that promotes `stable' international environmental agreements. In developing this scheme, we incorporate the equity position that victims of pollution should benefit from pollution control. The result is a scheme which picks a unique element in the core; it maximizes the benefits to the victims of pollution and ensures that polluters are willing to join the scheme.