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Actions Prior to Entering an International Environmental Agreement

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Author Info
Urs Steiner Brandt

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Abstract

This paper demonstrates how expectations about the design of regimes influence countries' actions before negotiating for agreements on international environmental problems. When a country is privately informed about own reduction costs, the preagreement emission level serves as a device to signal costs. The first main result is that private information leads to an environmentally less effective situation. Second, the distortions depend on the type of regime. In particular, for high probability of high costs, distortions are lower in a uniform regime than in a differentiated regime. Hence, comparison of regimes is nontrivial when private information is added.

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File URL: http://www.ingentaconnect.com/content/mohr/jite/2002/00000158/00000004/art00009
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Publisher Info
Article provided by Mohr Siebeck, Tübingen in its journal Journal of Institutional and Theoretical Economics.

Volume (Year): 158 (2002)
Issue (Month): 4 (December)
Pages: 695-
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Handle: RePEc:mhr:jinste:urn:sici:0932-4569(200212)158:4_695:apteai_2.0.tx_2-7

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Related research
Keywords:

Find related papers by JEL classification:
C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information
F00 - International Economics - - General - - - General
Q2 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation

Cited by:
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  1. 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. [Downloadable!]
    Other versions:
  2. Urs Brandt, 2003. "Are Uniform Solutions Focal? – The Case of International Environmental Agreements," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 25(3), pages 357-376, July. [Downloadable!] (restricted)
Statistics
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This page was last updated on 2009-12-10.

This information is provided to you by IDEAS at the Department of Economics, College of Liberal Arts and Sciences, University of Connecticut using RePEc data on a server sponsored by the Society for Economic Dynamics.