Abstract
Acid rain causes greater environment damage than would occur if countries act cooperatively. Based on new estimates of sulphur abatement cost functions, the potential gains from cooperation are calculated for Europe. Various cooperative abatement rates are compared with the rates implied by recent international agreements, the 30% club and the Second Sulphur Protocol. It is shown that the monetary gains from cooperation may be smaller than previously thought. The distinction is made between primary and secondary abatement, and their respective roles are discussed: it is shown that agreed targets can only be met if primary measures (eg fuel switching) are adopted.
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