Polluting nonrenewable resources: decentralization of the optimum in the presence of market power

Abstract

In this paper, I study the strategic interactions between a country that owns a monopoly on a polluting non renewable resource (basically, the OPEC), and a representative of countries that both consume the resource and are hurt by its pollution. Both pollution control and rent captation are at stake in this model.nonrenewable resources ; stok pollution ; differetial games