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International Environmental Agreements and Black Technology

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  • Gilbert Kollenbach

    (University of Hagen)

Abstract

This paper analyzes the stability of international environmental agreements in a dynamic game when the generation of both renewables and fossil fuel based energy requires specialized capital stocks or technologies, respectively. Two contract types are considered. At an incomplete (a complete) contract, the coalition coordinates only (both) CO $$_2$$ 2 emissions (and renewable energy investments) of its members. In contrast to the results of Battaglini and Harstad (J Polit Econ 124:160–204, 2016) who endorse incomplete contracts to increase the coalition size, only small coalitions are stable regardless of whether the contract is complete or incomplete. This result also holds if black technology is temporary not completely used or transfers are considered.

Suggested Citation

  • Gilbert Kollenbach, 2022. "International Environmental Agreements and Black Technology," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 82(3), pages 601-624, July.
    • Handle: RePEc:kap:enreec:v:82:y:2022:i:3:d:10.1007_s10640-022-00668-z
    DOI: 10.1007/s10640-022-00668-z
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    More about this item

    Keywords

    International environmental agreements; Black capacity; Complete contract; Incomplete contract;
    All these keywords.

    JEL classification:

    • H87 - Public Economics - - Miscellaneous Issues - - - International Fiscal Issues; International Public Goods
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation

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