Environmental Economics 6th Edition by Martha k Field,Barry Field

تمرين 1

Following are illustrative numbers indicating benefits and costs to Country A of taking specific actions on an international treaty to reduce CO₂ emissions. The choice is either to adhere to the CO₂ emissions cutbacks called for by the treaty or to disregard the treaty.
What is the incentive for Country A to free ride on the abatement efforts of other countries? If all countries become free riders, what is the result?