Actions Prior to Entering an International Environmental Agreement
AbstractThis 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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Bibliographic InfoArticle provided by Mohr Siebeck, Tübingen in its journal Journal of Institutional and Theoretical Economics.
Volume (Year): 158 (2002)
Issue (Month): 4 (December)
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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; Mechanism Design
- F00 - International Economics - - General - - - General
- Q2 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation
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- Urs Steiner Brandt, 2003.
"Unilateral Actions the Case of International Environmental Problems,"
40/03, University of Southern Denmark, Department of Environmental and Business Economics.
- Brandt, Urs Steiner, 2004. "Unilateral actions, the case of international environmental problems," Resource and Energy Economics, Elsevier, vol. 26(4), pages 373-391, December.
- 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.
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