When countries engage in multilateral agreements regarding pollutants that affect all of them (i.e. acid rain pollution resulting from SO₂ emissions), the agreements supply

Question

Quizplus · Accepted Answer

Multilateral agreements regarding pollutants result in the creation of global public goods, which are non-excludable and non-rivalrous in nature. This means that all countries can benefit from the reduction of pollutants, regardless of their contributions to the effort. However, because the benefits are not tied to individual contributions, there is a possibility of free-riders - countries that do not contribute to the effort, but still benefit from the reduction in pollutants.

When Countries Engage in Multilateral Agreements Regarding Pollutants That Affect