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Cooperation, stability and self-enforcement in interational environmental agreements : a conceptual discussion

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  • Henry, TULKENS

    (UNIVERSITE CATHOLIQUE DE LOUVAIN, Department of Economics)

  • Parkash, CHANDER

    (National University of Singapore)

Abstract

In essence, any international environmental agreement (IEA) imples cooperation of a form or another; The paper seeks for logical foundations of this. It first deals with how the need for cooperation derives from the public good aspect of the externalities involved, as well as with where the source of cooperation lies in cooperative game theory. In either case, the quest for efficiency is claimed to be at the root of cooperation. Next, cooperation is considered from the point of view of stability. After recalling the two competing concepts of stability in use in the IEA literature, new insights on the nature of the gamma core in general are given as well as of the Chandler-Tulkens solution within the gamma core. Free riding is also evaluated in relation with the alternative forms of stability under scrutiny. Finally, it is asked whether with the often mentioned virtue of “self enforcement” any conceptual gain is achieved, different from what is meant by efficiency and stability. A skeptical answer is offered, as a reply to Barret’s (2003) attempt at giving the notion a specific content.

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Bibliographic Info

Paper provided by Université catholique de Louvain, Département des Sciences Economiques in its series Discussion Papers (ECON - Département des Sciences Economiques) with number 2006003.

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Length: 26
Date of creation: 01 Jan 2006
Date of revision: 15 Jan 2006
Handle: RePEc:ctl:louvec:2006003

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References

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  1. Parkash Chander, 2003. "The ?-Core and Coalition Formation," Working Papers 2003.94, Fondazione Eni Enrico Mattei.
  2. Oran R. Young, 2003. "Environment and Statecraft: The Strategy of Environmental Treaty-Making," Global Environmental Politics, MIT Press, vol. 3(1), pages 145-147, 02.
  3. Buchner, Barbara & Carraro, Carlo, 2005. "Regional and Sub-Global Climate Blocs. A Game-Theoretic Perspective on Bottom-up Climate Regimes," CEPR Discussion Papers 5034, C.E.P.R. Discussion Papers.
  4. Roberts, John, 1979. "Incentives in Planning Procedures for the Provision of Public Goods," Review of Economic Studies, Wiley Blackwell, vol. 46(2), pages 283-92, April.
  5. CHANDER, Parkash & TULKENS, Henry & VAN YPERSELE, Jean - Pascal & WILLEMS, Stefane, 1999. "The Kyoto protocol: an economic and game theoretic interpretation," CORE Discussion Papers 1999025, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  6. Johan Eyckmans & Michael Finus, 2004. "An Almost Ideal Sharing Scheme for Coalition Games with Externalities," Working Papers 2004.155, Fondazione Eni Enrico Mattei.
  7. Chander, Parkash & Tulkens, Henry, 1994. "The Core of an Economy With Multilateral Environmental Externalities," Working Papers 886, California Institute of Technology, Division of the Humanities and Social Sciences.
  8. 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).
  9. Carraro, Carlo & Siniscalco, Domenico, 1991. "Strategies for the International Protection of the Environment," CEPR Discussion Papers 568, C.E.P.R. Discussion Papers.
  10. Johan Eyckmans & Michael Finus, 2007. "Measures to enhance the success of global climate treaties," International Environmental Agreements: Politics, Law and Economics, Springer, vol. 7(1), pages 73-97, March.
  11. Tulkens, Henry & Schoumaker, Francoise, 1975. "Stability analysis of an effluent charge and the `polluters pay' principle," Journal of Public Economics, Elsevier, vol. 4(3), pages 245-269, August.
  12. Dreze, Jacques H & de la Vallee Poussin, D, 1971. "A Tatonnement Process for Public Goods," Review of Economic Studies, Wiley Blackwell, vol. 38(114), pages 133-50, April.
  13. 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).
  14. Buonanno, Paolo & Carraro, Carlo & Galeotti, Marzio, 2003. "Endogenous induced technical change and the costs of Kyoto," Resource and Energy Economics, Elsevier, vol. 25(1), pages 11-34, February.
  15. Champsaur, Paul & Laroque, Guy, 1982. "Strategic Behavior in Decentralized Planning Procedures," Econometrica, Econometric Society, vol. 50(2), pages 325-44, March.
  16. Barrett, Scott, 1994. "Self-Enforcing International Environmental Agreements," Oxford Economic Papers, Oxford University Press, vol. 46(0), pages 878-94, Supplemen.
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Cited by:
  1. Beard, Rodney & Mallawaarachchi, Thilak, 2011. "Are international environmental agreements stable ex-post?," MPRA Paper 34303, University Library of Munich, Germany.
  2. Bayramoglu, Basak & Jacques, Jean-François, 2012. "International negotiations on the environment : Uniform vs. differentiated standards," Economics Papers from University Paris Dauphine 123456789/4069, Paris Dauphine University.
  3. BRECHET, Thierry & GERARD, François & TULKENS, Henry, 2007. "Climate coalitions: a theoretical and computational appraisal," CORE Discussion Papers 2007003, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  4. Jin Zhugang & Can Wang & Wenjia Cai, 2013. "Cooperation is essential for 2 centigrade degrees Target: a new perspective from the Dynamic Game Model," Review of Applied Socio-Economic Research, Pro Global Science Association, vol. 5(1), pages 100-105, June.
  5. Gary D. Libecap, 2013. "Addressing Global Environmental Externalities: Transaction Costs Considerations," NBER Working Papers 19501, National Bureau of Economic Research, Inc.
  6. Dritan Osmani & Richard S.J. Tol, 2007. "Toward Farsightedly Stable International Environmental Agreements, Part two," Working Papers FNU-149, Research unit Sustainability and Global Change, Hamburg University, revised Oct 2007.
  7. Peter Cramton & Steven Stoft, 2010. "International Climate Games: From Caps to Cooperation," Papers of Peter Cramton 10icg, University of Maryland, Department of Economics - Peter Cramton, revised 2010.
  8. Dritan Osmani & Richard S.J. Tol, 2007. "A short note on joint welfare maximization assumptions," Working Papers FNU-150, Research unit Sustainability and Global Change, Hamburg University, revised Oct 2007.
  9. Dritan Osmani & Richard S.J. Tol, 2008. "Evolution in time of Farsightedly Stable Coalitions: An Application of FUND," Working Papers FNU-162, Research unit Sustainability and Global Change, Hamburg University, revised May 2008.

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