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Thus total production is fixed in both regions, and the emissions of pollutants are also determined as a by-product. Cooperation cuts down production and trade, and in consequence the emissions of pollutants. Therefore, the environmental gain from cooperation overcomes the shrink in the interregional trade. An allocation mechanism to share the surplus of cooperation is defined, which guarantees a time-consistent agreement between both regions.<\/jats:p>","DOI":"10.1142\/s0219198906000977","type":"journal-article","created":{"date-parts":[[2006,10,10]],"date-time":"2006-10-10T11:15:47Z","timestamp":1160478947000},"page":"369-393","source":"Crossref","is-referenced-by-count":14,"title":["A TIME-CONSISTENT AGREEMENT IN AN INTERREGIONAL DIFFERENTIAL GAME ON POLLUTION AND TRADE"],"prefix":"10.1142","volume":"08","author":[{"given":"FRANCISCO","family":"CABO","sequence":"first","affiliation":[{"name":"Dpto. Econom\u00eda Aplicada (Matem\u00e1ticas), Avda. 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