International Environmental Agreements: Emissions Trade, Safety Valves and Escape Clauses
AbstractWe explain how the structure of multi-national or multi-regional environmental agreements affect their chance of success. Trade in emissions permits has ambiguous and in some cases surprising effects on both the equilibrium level of abatement, and on the ability to persuade nations or regions to participate in environmental agreements. An escape clause policy and a safety valve policy have essentially the same properties when membership in environmental agreement is pre-determined, but they create markedly different effects on the incentives to join such an agreement. The two policies lead to a qualitative difference in the leverage that a potential member of the agreement exercises on other members. JEL classification numbers C72, H4, Q54
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Presses de Sciences-Po in its journal Revue économique.
Volume (Year): 61 (2010)
Issue (Month): 1 ()
Contact details of provider:
Web page: http://www.cairn.info/revue-economique.htm
Kyoto Protocol; escape clause; emissions trade; cost uncertainty; participation game; International Environmental Agreement;
Other versions of this item:
- Karp, Larry & Zhao, Jinhua, 2012. "International Environmental Agreements: Emissions trade, safety valves and escape clauses," Department of Agricultural & Resource Economics, UC Berkeley, Working Paper Series qt1rs9r7z9, Department of Agricultural & Resource Economics, UC Berkeley.
- C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
- H4 - Public Economics - - Publicly Provided Goods
- Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Karp, Larry & Zhang, Jiangfeng, 2006. "Regulation with anticipated learning about environmental damages," Journal of Environmental Economics and Management, Elsevier, vol. 51(3), pages 259-279, May.
- Karp, Larry & Zhao, Jinhua, 2007.
"A proposal to reform the Kyoto Protocol : the role of escape clauses and foresight,"
CUDARE Working Paper Series
1050, University of California at Berkeley, Department of Agricultural and Resource Economics and Policy.
- Karp, Larry & Zhao, Jinhua, 2007. "A Proposal to Reform the Kyoto Protocol: the Role of Escape Clauses and Foresight," Department of Agricultural & Resource Economics, UC Berkeley, Working Paper Series qt5b10v2jr, Department of Agricultural & Resource Economics, UC Berkeley.
- Stavins, Robert, 2007.
"Addressing Climate Change with a Comprehensive U.S. Cap-and-Trade System,"
Working Paper Series
rwp07-053, Harvard University, John F. Kennedy School of Government.
- Robert N. Stavins, 2008. "Addressing climate change with a comprehensive US cap-and-trade system," Oxford Review of Economic Policy, Oxford University Press, vol. 24(2), pages 298-321, Summer.
- Stavins, Robert N., 2007. "Addressing Climate Change with a Comprehensive U.S. Cap-and-Trade System," Working paper 456, Regulation2point0.
- Robert N. Stavins, 2008. "Addressing Climate Change with a Comprehensive U.S. Cap-and-Trade System," Working Papers 2008.67, Fondazione Eni Enrico Mattei.
- Hoel, Michael & Karp, Larry, 2001.
"Taxes and quotas for a stock pollutant with multiplicative uncertainty,"
Journal of Public Economics,
Elsevier, vol. 82(1), pages 91-114, October.
- Michael Hoel & Larry Karp, 1999. "Taxes and Quotas for a Stock Pollutant with Multiplicative Uncertainty," Working Papers 1999.15, Fondazione Eni Enrico Mattei.
- Hoel, Michael & Karp, Larry, 2000. "Taxes and Quotas for a Stock Pollutant with Multiplicative Uncertainty," Department of Agricultural & Resource Economics, UC Berkeley, Working Paper Series qt9v86p5s7, Department of Agricultural & Resource Economics, UC Berkeley.
- Malik, Arun S., 1990. "Markets for pollution control when firms are noncompliant," Journal of Environmental Economics and Management, Elsevier, vol. 18(2), pages 97-106, March.
- Pizer, William & Newell, Richard, 1998.
"Regulating Stock Externalities Under Uncertainty,"
dp-99-10-rev, Resources For the Future.
- Hoel, Michael & Karp, Larry, 2001.
"Taxes versus Quotas for a Stock Pollutant,"
Department of Agricultural & Resource Economics, UC Berkeley, Working Paper Series
qt5fx9p7kf, Department of Agricultural & Resource Economics, UC Berkeley.
- Stranlund, John K & Chavez, Carlos A, 2000. "Effective Enforcement of a Transferable Emissions Permit System with a Self-Reporting Requirement," Journal of Regulatory Economics, Springer, vol. 18(2), pages 113-31, September.
- Stiglitz Joseph, 2006. "A New Agenda for Global Warming," The Economists' Voice, De Gruyter, vol. 3(7), pages 1-4, July.
- Matthew McGinty, 2007. "International environmental agreements among asymmetric nations," Oxford Economic Papers, Oxford University Press, vol. 59(1), pages 45-62, January.
- Gersbach, Hans & Hummel, Noemi, 2011. "Climate Policy and Developing Countries," CEPR Discussion Papers 8685, C.E.P.R. Discussion Papers.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Jean-Baptiste de Vathaire).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.