For a very general class of pollution control models involving strictly quasi-concave utility
functions over consumption and environmental quality and strictly convex emission
abatement cost functions, a proportional cost sharing mechanism is presented inspired by
the ratio equilibrium introduced by7. It is shown that the proportional solution yields a cost
efficient allocation of abatement efforts and that the resulting utility imputation always lies in
the stand alone core of the cost sharing game. In order to decentralize the proportional cost …