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Transfers to sustain core-theoretic cooperation in international stock pollutant control

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Author Info

  • GERMAIN, Marc

    ()
    (Center for Operations Research and Econometrics (CORE), Université catholique de Louvain (UCL), Louvain la Neuve, Belgium)

  • TOINT, Philippe

    ()
    (Département de Mathématique, Facultés Universitaires Notre-Dame de la Paix, Namur)

  • TULKENS, Henry

    ()
    (Center for Operations Research and Econometrics (CORE), Université catholique de Louvain (UCL), Louvain la Neuve, Belgium)

  • DE ZEEUW, Aart

    ()
    (Département of Economics and CentER, Tilburg University)

Abstract

International environmental agreements aiming at correcting negative externalities generated by transboundary pollution are difficult to achieve for many reasons. Important obstacles arise from asymmetry in costs and benefits, and instability may occur due to the fact that coalitions of countries may attempt to do better for themselves outside of any proposed agreement. In a static context, it has already been shown that it is possible to achieve stability in the sense of the core of a cooperative game, by means of appropriately defined transfers between the countries involved. However, the transboundary pollution problems that are most important are caused by accumulated pollutants so that a dynamic analysis is required. This paper provides a transfer scheme that yields a core property in a dynamic context. The possibility of computing such transfers numerically is discussed.

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Bibliographic Info

Paper provided by Université catholique de Louvain, Center for Operations Research and Econometrics (CORE) in its series CORE Discussion Papers with number 1998032.

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Date of creation: 01 May 1998
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Handle: RePEc:cor:louvco:1998032

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Related research

Keywords: transfrontier pollution; stock pollutant; dynamic cooperative games; coalitions; core solution.;

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References

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  1. Henry Tulkens & Parkash Chander, 1997. "The Core of an Economy with Multilateral Environmental Externalities," International Journal of Game Theory, Springer, vol. 26(3), pages 379-401.
  2. Chander, P. & Tulkens, H., . "A core-theoretic solution for the design of cooperative agreements on transfrontier pollution," CORE Discussion Papers RP -1158, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  3. Ploeg, F. van der & Zeeuw, A.J. de, 1992. "International aspects of pollution control," Open Access publications from Tilburg University urn:nbn:nl:ui:12-377516, Tilburg University.
  4. Zeeuw, A.J. de, 1998. "The acid rain differential game," Open Access publications from Tilburg University urn:nbn:nl:ui:12-77117, Tilburg University.
  5. 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.
  6. Barrett, Scott, 1994. "Self-Enforcing International Environmental Agreements," Oxford Economic Papers, Oxford University Press, vol. 46(0), pages 878-94, Supplemen.
  7. Veijo Kaitala & Matti Pohjola & Olli Tahvonen, 1992. "Transboundary air pollution and soil acidification: A dynamic analysis of an acid rain game between Finland and the USSR," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 2(2), pages 161-181, March.
  8. Houba, H.E.D. & Zeeuw, A.J. de, 1992. "Strategic bargaining for the control of a dynamic system in state-space form," Discussion Paper 1992-36, Tilburg University, Center for Economic Research.
  9. Zeeuw, A.J. de, 1995. "Strategic bargaining for the control of a dynamic system in state-space form," Open Access publications from Tilburg University urn:nbn:nl:ui:12-377499, Tilburg University.
  10. Karl-Göran Mäler & Aart De Zeeuw, 1998. "The Acid Rain Differential Game," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 12(2), pages 167-184, September.
  11. GERMAIN , Marc & TOINT , Philippe & TULKENS, Henry, 1997. "Financial transfers to ensure cooperative international optimality in stock pollutant abatement," CORE Discussion Papers 1997001, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
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Citations

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Cited by:
  1. repec:ebl:ecbull:v:3:y:2003:i:3:p:1-10 is not listed on IDEAS
  2. Parkash Chander & Henry Tulkens & Jean-Pascal van Ypersele & Stephane Willems, 1999. "The Kyoto Protocol: An Economic and Game Theoretic Interpretation," CESifo Working Paper Series 229, CESifo Group Munich.
  3. FIGUIÈRES, Charles & VERDONCK, Magali, . "On the core of an economy with multilateral and multidimensional environmental externalities," CORE Discussion Papers RP -1635, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  4. Michael Finus & Juan-Carlos Altamirano-Cabrera & Ekko Ierland, 2005. "The effect of membership rules and voting schemes on the success of international climate agreements," Public Choice, Springer, vol. 125(1), pages 95-127, July.
  5. Richard S.J. Tol & Wietze Lise & Benoit Morel & Bob C.C. van der Zwaan, 2001. "Technology Development And Diffusion And Incentives To Abate Greenhouse Gas Emissions," Working Papers FNU-6, Research unit Sustainability and Global Change, Hamburg University, revised Feb 2001.
  6. EYCKMANS, Johan & FINUS, Michael, 2003. "Coalition formation in a global warming game : how the design of protocols affects the success of environmental treaty-making," CORE Discussion Papers 2003088, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  7. Germain, Marc & Toint, Philippe & Tulkens, Henry & de Zeeuw, Aart, 2003. "Transfers to sustain dynamic core-theoretic cooperation in international stock pollutant control," Journal of Economic Dynamics and Control, Elsevier, vol. 28(1), pages 79-99, October.
  8. Johan Eyckmans & Henry Tulkens, 1999. "Simulating with RICE Coalitionally Stable Burden Sharing Agreements for the Climate Change Problem," CESifo Working Paper Series 228, CESifo Group Munich.
  9. GERMAIN, Marc & VAN STEENBERGHE, Vincent, 2001. "Constraining equitable allocations of tradable greenhouse gases emission quotas by acceptability," CORE Discussion Papers 2001005, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  10. VAN STEENBERGHE, Vincent, 2004. "Core-stable and equitable allocations of greenhouse gas emission permits," CORE Discussion Papers 2004075, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).

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