In this essay I will outline what acid rain is in terms of its causes and effects. In this context I will then explain what is meant by the acid rain game and its implications. I will then outline an efficient strategy for tackling this transboundary problem. Finally I will offer a possible problem associated with this efficient strategy.
Acid rain is a form of pollution that is caused by the emissions of Sulphur dioxide, Nitrous Oxides and Chlorine as a result of burning fossil fuels. These gases can either mixed with water molecules in the air and be deposited as rain or they can remain as dry deposits and can be mixed with the surface water such as lakes and streams. The gases reduce the pH level of the water making it more acidic.
This can have damaging effect on the environment. For example the acid in lakes releases aluminium from the rocks and mineral deposits that are found there and this kills fish and biodiversity. Acid rain can also damage forests and limestone buildings. Sulphur dioxide also impacts on human health causing respiratory problems if the drinking water becomes more acidic.
[...] Mathematically an efficient strategy to tackle the transboundary pollution problem appears simply to make an agreement where ‘the sum of the net benefits over all European countries is maximized' (Maler, 1990). However this strategy may not work because “it must also be the case that each individual coalition has an incentive to enter an agreement that would lead to the realization of these gains” (Maler, Olsson, 1990). As I have shown with the game matrix, countries that make a net loss from co-operation would need some sort of incentive such as compensation to co-operate. [...]
[...] I will then outline an efficient strategy for tackling this transboundary problem. Finally I will offer a possible problem associated with this efficient strategy. Acid rain is a form of pollution that is caused by the emissions of Sulphur dioxide, Nitrous Oxides and Chlorine as a result of burning fossil fuels. These gases can either mix with water molecules in the air and be deposited as rain or they can remain as dry deposits and mix with the surface water such as lakes and streams. [...]
[...] This optimal point equates the marginal costs of abatement for each source with the sum of marginal damages at each receptor point. (Sourced from Lecture Slides, Murray) This means that for an efficient solution to the problem of acid rain we want to aim to minimize the costs of abatement to the country that emits the gases and minimize the damage costs inflicted on the receptor country. This occurs when each extra cost of abatement inflicted on the polluting country equals each extra damage cost inflicted on the victim country. [...]
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