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19 April, 04:32

What arguments do low-income countries make in international discussions of global environmental clean - up?

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  1. 19 April, 05:48
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    Consider the case of global environmental problems that spill across international borders as a prisoner's dilemma of the sort studied in Monopolistic Competition and Oligopoly. Say that there are two countries A and B. Each country can choose whether to protect the environment at a cost of 10 or not to protect it at a cost of zero. If one country decides to protect the environment there is a benefit of 16 but the benefit is divided equally between two countries. If both countries decide to protect the environment there is a benefit of 32 which is divided equally between the two countries.
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