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R&D Cooperation and the Stability of International Environmental Agreements

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  • Carraro, Carlo
  • Siniscalco, Domenico

Abstract

International agreements to protect the global environment are typically difficult to reach. In principle they should be profitable for all players involved in the negotiation. Even when they are profitable, however, they are often unstable due to the incentive to free-ride (enjoying the clean environment provided by others' emission reduction without paying the cost). One possible way to overcome this problem is to link the unstable environmental agreement to other agreements which are profitable and stable. This paper presents a model where an environmental negotiation, which is profitable but unstable, is `stabilized' by linking it to an agreement on R&D cooperation, which is shown to be profitable and stable. The optimality of this linkage is also discussed.

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Bibliographic Info

Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 1154.

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Date of creation: Apr 1995
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Handle: RePEc:cpr:ceprdp:1154

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Related research

Keywords: Coalition; Environment; Global Warming; Innovation; Negotiations;

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Cited by:
  1. Carlo Carraro & Alessandra Sgobbi, 2007. "Modelling Negotiated Decision Making: a Multilateral, Multiple Issues, Non-Cooperative Bargaining Model with Uncertainty," Working Papers 2007_12, Department of Economics, University of Venice "Ca' Foscari".
  2. Andrew K. Rose & Mark M. Spiegel, 2008. "Non-Economic Engagement and International Exchange: The Case of Environmental Treaties," NBER Working Papers 13988, National Bureau of Economic Research, Inc.
  3. Spagnolo, G., 1999. "Issue Linkage, Delegation, and International Policy Cooperation," Cambridge Working Papers in Economics 9913, Faculty of Economics, University of Cambridge.
  4. Carlo Carraro & Carmen Marchiori & Alessandra Sgobbi, 2006. "Advances in Negotiation Theory: Bargaining, Coalitions and Fairness," Working Papers 2006_08, Department of Economics, University of Venice "Ca' Foscari".
  5. Michael Finus, 2004. "Modesty Pays: Sometimes!," Working Papers 2004.68, Fondazione Eni Enrico Mattei.
  6. Claudia Kemfert & Wietze Lise & Richard Tol, 2004. "Games of Climate Change with International Trade," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 28(2), pages 209-232, June.
  7. Michael Finus & Bianca Rundshagen, 1998. "Renegotiation–Proof Equilibria in a Global Emission Game When Players Are Impatient," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 12(3), pages 275-306, October.
  8. Barbara Buchner & Carlo Carraro & Igor Cersosimo & Carmen Marchiori, 2002. "Back to Kyoto? US Participation and the Linkage between R&D and Climate Cooperation," CESifo Working Paper Series 688, CESifo Group Munich.
  9. Johannes Urpelainen, 2014. "Sinking costs to increase participation: technology deployment agreements enhance climate cooperation," Environmental Economics and Policy Studies, Society for Environmental Economics and Policy Studies - SEEPS, vol. 16(3), pages 229-240, July.
  10. Scott Barret, 1998. "On the Theory and Diplomacy of Environmental Treaty-Making," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 11(3), pages 317-333, April.

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