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Self-enforcing international environmental agreements with third-party organizations: Initial payment, technological development, and refunding

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  • Takashima, Nobuyuki

Abstract

This paper presents a new framework for international environmental agreements (IEAs) with technological development that incorporates an initial payment and refunding scheme (IPRS) in collaboration with third-party organizations (TPOs). In our IPRS, technological development is achieved by using a portion of initial payments from signatories to the TPO, with the remaining amount being refunded to the payers if they cooperate with the IEA. We examine self-enforcing IEAs using a stage game model. The results show that IEA size increases with the cost of technological development. Consequently, we provide a solution that achieves large-scale self-enforcing IEAs in collaboration with TPOs while resolving issues regarding initial participation in IEAs.

Suggested Citation

  • Takashima, Nobuyuki, 2023. "Self-enforcing international environmental agreements with third-party organizations: Initial payment, technological development, and refunding," Economics Letters, Elsevier, vol. 228(C).
    • Handle: RePEc:eee:ecolet:v:228:y:2023:i:c:s0165176523001891
    DOI: 10.1016/j.econlet.2023.111164
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    More about this item

    Keywords

    International environmental agreements; Transboundary pollution; Self-enforcing; Third-party organizations; Initial payment and refunding;
    All these keywords.

    JEL classification:

    • F53 - International Economics - - International Relations, National Security, and International Political Economy - - - International Agreements and Observance; International Organizations
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • H87 - Public Economics - - Miscellaneous Issues - - - International Fiscal Issues; International Public Goods
    • Q52 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Pollution Control Adoption and Costs; Distributional Effects; Employment Effects
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

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