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Can international environmental cooperation be bought?

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  • Fuentes-Albero, Cristina
  • Rubio, Santiago J.

Abstract

In this paper a two-stage game of international environmental agreement formation with asymmetric countries is analytically solved. The equilibrium of the game makes it possible to determine the size and composition of a stable agreement. Two cases are studied. In the first case, countries differ only in abatement costs, while in the second case, they differ in environmental damages. In both cases, two different institutional settings, one without transfers and another with transfers, are considered. The results establish that the asymmetry assumption has no important effects on the scope of cooperation in comparison with the symmetric case if transfers are not used or abatement costs represent the only difference among countries. However, when the only difference is in environmental damages, the level of cooperation that can be bought through a self-financed transfer scheme increases with the degree of asymmetry.

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Bibliographic Info

Article provided by Elsevier in its journal European Journal of Operational Research.

Volume (Year): 202 (2010)
Issue (Month): 1 (April)
Pages: 255-264

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Handle: RePEc:eee:ejores:v:202:y:2010:i:1:p:255-264

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Web page: http://www.elsevier.com/locate/eor

Related research

Keywords: C72 D62 F02 Q20 Self-enforcing international environmental agreements Linear environmental damages Emissions Transfers;

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Cited by:
  1. Beard, Rodney & Mallawaarachchi, Thilak, 2011. "Are international environmental agreements stable ex-post?," MPRA Paper 34303, University Library of Munich, Germany.
  2. De Zeeuw, A. & Ochea, M., 2013. "Evolution of Reciprocity in Asymmetric International Environmental Negotiations," CeNDEF Working Papers 13-09, Universiteit van Amsterdam, Center for Nonlinear Dynamics in Economics and Finance.
  3. Kai Lessmann & Ulrike Kornek & Valentina Bosetti & Rob Dellink & Johannes Emmerling & Johan Eyckmans & Miyuki Nagashima & Hans-Peter Weikard & Zili Yang, 2014. "The Stability and Effectiveness of Climate Coalitions: A Comparative Analysis of Multiple Integrated Assessment Models," Working Papers 2014.05, Fondazione Eni Enrico Mattei.
  4. Thomas Eichner & Rüdiger Pethig, 2012. "Stable climate coalitions (Nash) and international trade," Volkswirtschaftliche Diskussionsbeiträge 155-12, Universität Siegen, Fakultät Wirtschaftswissenschaften, Wirtschaftsinformatik und Wirtschaftsrecht.
  5. Finus, Michael & Pintassilgo, Pedro, 2010. "International Environmental Agreements under Uncertainty: Does the Veil of Uncertainty Help?," Spatial and Organizational Dynamics Discussion Papers 2010-7, CIEO-Research Centre for Spatial and Organizational Dynamics, University of Algarve.
  6. Ansink, Erik & Bouma, Jetske, 2013. "Effective support for community resource management," Forest Policy and Economics, Elsevier, vol. 37(C), pages 94-103.
  7. Pierre Courtois & Tarik Tazdaït, 2011. "Bargaining over a climate deal: is it worse to wait and see?," Working Papers 11-07, LAMETA, Universtiy of Montpellier, revised Mar 2011.
  8. Dellink, Rob & Finus, Michael, 2009. "Uncertainty and Climate Treaties: Does Ignorance Pay?," Stirling Economics Discussion Papers 2009-15, University of Stirling, Division of Economics.
  9. Jonathan Colmer, 2011. "Asymmetry, optimal transfers and international environmental agreements," Grantham Research Institute on Climate Change and the Environment Working Papers 66, Grantham Research Institute on Climate Change and the Environment.
  10. Pedro Pintassilgo & Michael Finus & Marko Lindroos & Gordon Munro, 2010. "Stability and Success of Regional Fisheries Management Organizations," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 46(3), pages 377-402, July.
  11. Eyckmans, Johan & Finus, Michael & Mallozzi, Lina, 2011. "A New Class of Welfare Maximizing Stable Sharing Rules for Partition Function Games with Externalities," Working Papers 2011/08, Hogeschool-Universiteit Brussel, Faculteit Economie en Management.
  12. Wang, Yiming, 2013. "A time-consistent model for cooperation in international pollution control," Economic Modelling, Elsevier, vol. 33(C), pages 500-506.
  13. Gersbach, Hans & Winkler, Ralph, 2012. "Global refunding and climate change," Journal of Economic Dynamics and Control, Elsevier, vol. 36(11), pages 1775-1795.
  14. Glanemann, Nicole, 2012. "Can international environmental cooperation be bought: Comment," European Journal of Operational Research, Elsevier, vol. 216(3), pages 697-699.

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