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Self-enforcing international environmental agreements with a stock pollutant


Author Info

  • Santiago Rubio


  • Begoña Casino



In this paper the stability of an International Environmental Agreement (IEA) among N identical countries that emit a pollutant are studied using a two-stage game. In the first stage each country decides noncooperatively whether or not to join an IEA, and in the second stage signatories jointly against nonsignatories determine their emissions in a dynamic setting defined in continuous time. A numerical simulation shows that a bilateral coalition is the unique self-enforcing IEA independently of the gains coming from cooperation and the kind of strategies played by the agents (open-loop or feedback strategies). We have also studied the effects of a minimum participation clause finding that for this case a self-enforcing IEA just consists of the number of countries established in the clause. Copyright Springer-Verlag Berlin/Heidelberg 2005

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Bibliographic Info

Article provided by Springer in its journal Spanish Economic Review.

Volume (Year): 7 (2005)
Issue (Month): 2 (06)
Pages: 89-109

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Handle: RePEc:spr:specre:v:7:y:2005:i:2:p:89-109

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Keywords: International environmental agreements; Stock externalities; Differential games; Open-loop Nash equilibrium;


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Cited by:
  1. Bruno Nkuiya, 2012. "The Effects of the Length of the Period of Commitment on the Size of Stable International Environmental Agreements," Dynamic Games and Applications, Springer, vol. 2(4), pages 411-430, December.
  2. Jacques, Jean-François & Bayramoglu, Basak, 2011. "The role of fixed cost in international environmental negotiations," Economics Papers from University Paris Dauphine 123456789/5873, Paris Dauphine University.
  3. Ralph Winkler, 2008. "Optimal compliance with emission constraints: dynamic characteristics and the choice of technique," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 39(4), pages 411-432, April.
  4. Xiao Chen & Alan Woodland, 2013. "International trade and climate change," International Tax and Public Finance, Springer, vol. 20(3), pages 381-413, June.
  5. Omar J. Casas & Rosario Romera, 2011. "The international stock pollutant control: a stochastic formulation with transfers," Statistics and Econometrics Working Papers ws112217, Universidad Carlos III, Departamento de Estadística y Econometría.
  6. Leo Wangler & JJuan-Carlos Altamirano-Cabrera & Hans-Peter Weikard, 2011. "The Political Economy of International Environmental Agreements: A Survey," Jena Economic Research Papers 2011-038, Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics.
  7. Marta Biancardi & Andrea Di Liddo, 2008. "International Environmental Agreement: a Dynamic Model of Emissions Reduction," Quaderni DSEMS 13-2008, Dipartimento di Scienze Economiche, Matematiche e Statistiche, Universita' di Foggia.
  8. Michèle Breton & Lucia Sbragia & Georges Zaccour, 2010. "A Dynamic Model for International Environmental Agreements," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 45(1), pages 25-48, January.
  9. Omar J. Casas & Rosario Romera, 2009. "Controlling the international stock pollutant with policies depending on target values," Statistics and Econometrics Working Papers ws096019, Universidad Carlos III, Departamento de Estadística y Econometría.
  10. Benchekroun, H. & Ray Chaudhuri, A., 2012. "Cleaner Technologies and the Stability of International Environmental Agreements," Discussion Paper 2012-051, Tilburg University, Center for Economic Research.
  11. Calvo, Emilio & Rubio, Santiago J., 2013. "Dynamic Models of International Environmental Agreements: A Differential Game Approach," International Review of Environmental and Resource Economics, now publishers, vol. 6(4), pages 289-339, April.


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