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Co-operation and Unilateral Commitment in the Presence of Global Environmental Problems

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  • Jean-Christophe Pereau

    ()

  • Tarik Tazdait

    ()

Abstract

This paper focuses on the link between group co-operation and unilateral commitment of some countries in the presence of global environmental problems. We show that in case of a failure of negotiation, some countries can decide to commit unilaterally and reduce their emissions. We call this behaviour precautionary commitment. Absence of international agreement does not mean global defection from the environmental issue.We also show that the emergence of a non-co-ordinatedglobal co-operation can result from a strategic actionfrom the members of the coalition. The insiders of the coalition create an incentive for the non-members to reduce without co-ordinating their emissions. Copyright Kluwer Academic Publishers 2001

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Bibliographic Info

Article provided by European Association of Environmental and Resource Economists in its journal Environmental and Resource Economics.

Volume (Year): 20 (2001)
Issue (Month): 3 (November)
Pages: 225-239

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Handle: RePEc:kap:enreec:v:20:y:2001:i:3:p:225-239

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Web page: http://www.springerlink.com/link.asp?id=100263

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Keywords: global environmental problems; coalition; unilateral commitment; nash equilibrium;

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  1. Rotillon, Gilles & Tazdait, Tarik & Zeghni, Sylvain, 1996. "Bilateral or multilateral bargaining in the face of global environmental change?," Ecological Economics, Elsevier, vol. 18(2), pages 177-187, August.
  2. Chen, Zhiqi, 1997. "Negotiating an Agreement on Global Warming: A Theoretical Analysis," Journal of Environmental Economics and Management, Elsevier, vol. 32(2), pages 170-188, February.
  3. Barrett, Scott, 1994. "Self-Enforcing International Environmental Agreements," Oxford Economic Papers, Oxford University Press, vol. 46(0), pages 878-94, Supplemen.
  4. Kaitala, Veijo & Pohjola, Matti & Tahvonen, Olli, 1992. " An Economic Analysis of Transboundary Air Pollution between Finland and the Former Soviet Union," Scandinavian Journal of Economics, Wiley Blackwell, vol. 94(3), pages 409-24.
  5. Donsimoni, Marie-Paule & Economides, Nicholas S & Polemarchakis, Herakles M, 1986. "Stable Cartels," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 27(2), pages 317-27, June.
  6. CHANDER, Parkash & TULKENS, Henry, . "Theoretical foundations of negotiations and cost sharing in transfrontier pollution problems," CORE Discussion Papers RP -983, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  7. Kaitala, Veijo & Pohjola, Matti & Tahvonen, Olli, 1990. "Transboundary Air Pollution and Soil Acidification: A Dynamic Analysis of an Acid Rain Game between Finland and the USSR," Discussion Papers 344, The Research Institute of the Finnish Economy.
  8. Carraro, Carlo & Siniscalco, Domenico, 1992. "The international dimension of environmental policy," European Economic Review, Elsevier, vol. 36(2-3), pages 379-387, April.
  9. d'ASPREMONT, Claude & JACQUEMIN, Alexis & GABSZEWICZ, Jean J. & WEYMARK, John A., . "On the stability of collusive price leadership," CORE Discussion Papers RP -522, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  10. Carraro, Carlo & Siniscalco, Domenico, 1993. "Strategies for the international protection of the environment," Journal of Public Economics, Elsevier, vol. 52(3), pages 309-328, October.
  11. Henk Folmer & Pierre Mouche & Shannon Ragland, 1993. "Interconnected games and international environmental problems," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 3(4), pages 313-335, August.
  12. Hoel, Michael, 1991. "Global environmental problems: The effects of unilateral actions taken by one country," Journal of Environmental Economics and Management, Elsevier, vol. 20(1), pages 55-70, January.
  13. Barrett, Scott, 1997. "The strategy of trade sanctions in international environmental agreements," Resource and Energy Economics, Elsevier, vol. 19(4), pages 345-361, November.
  14. Gilles Rotillon & Tarik Tazdaït, 1996. "International bargaining in the presence of global environmental change," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 8(3), pages 293-314, October.
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Cited by:
  1. Marie-Laure Cabon-Dhersin & Shyama Ramani, 2006. "Les externalités sociales permettent-elles de résoudre la controverse théorique des « petites coalitions stables » dans les accords environnementaux ?," Revue économique, Presses de Sciences-Po, vol. 57(3), pages 431-438.
  2. Urs Steiner Brandt, 2003. "Unilateral Actions the Case of International Environmental Problems," Working Papers 40/03, University of Southern Denmark, Department of Environmental and Business Economics.
  3. Katarina Elofsson, 2007. "Cost Uncertainty and Unilateral Abatement," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 36(2), pages 143-162, February.
  4. repec:ebl:ecbull:v:17:y:2006:i:4:p:1-8 is not listed on IDEAS

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