The authors are very grateful to the Fondazione ENI Enrico Mattei, Efrem Castelnuovo and Valentina Bosetti for the help and comments. They also wish to thank Neil McMurdo (UK Department of Trade and Industry), Mimmo Zecca and Federica Aceto for their skilful assistance. Finally they thank ECOMOD Conference participants, Paris 2004, for valuable comments on a previous version of this paper.


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