This paper provides a general framework for studying the profitability and stability of international agreements to protect the environment in the presence of trans-frontier or global pollution. N countries are assumed to bargain on emission control. Each country decides whether or not to coordinate its strategy with other countries. A coalition is formed when both profitability and stability (no free riding) conditions are satisfied. The analysis shows that such coalitions exist but that only a small number of countries decide to cooperate. The paper thus explores the possibility of expanding such coalitions through transfers that induce other countries to cooperate. It is shown that large stable coalitions exist when low environmental interdependence exists and/or when the environmental damage functions are near-separable with respect to domestic and imported emissions. It is also shown that there are cases in which environmental negotiations can achieve substantial emission control even if countries behave non-cooperatively.
Download Info
To download:
If you experience problems downloading a file, check if you have the
proper application to
view it first. Information about this may be contained
in the File-Format links below. In case of further problems read
the IDEAS help
page. Note that these files are not on the IDEAS
site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Publisher Info
Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number
568.
Cited by: (explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.) This item has more than 25 citations. To prevent cluttering this page, these citations are listed on a separate page.