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An Approach to the stability of international environmental agreements: the absorbing sets solution

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  • Olaizola Ortega, María Norma

Abstract

We study international environmental negotiations when agreements between countries can not be binding. A problem with this kind of negotiations is that countries have incentives for free-riding from such agreements. We develope a notion of equilibrium based on the assumption that countries can create and dissolve agreements in their seeking of a larger welfare. This approach leads to a larger degree of cooperation compared to models based on the internal-external stability approach.

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Paper provided by Universidad del País Vasco - Departamento de Fundamentos del Análisis Económico I in its series IKERLANAK with number 2003-10.

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Date of creation: Dec 2003
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Handle: RePEc:ehu:ikerla:200310

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Postal: Dpto. de Fundamentos del Análisis Económico I, Facultad de CC. Económicas y Empresariales, Universidad del País Vasco, Avda. Lehendakari Aguirre 83, 48015 Bilbao, Spain
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Keywords: international environmental agreements; absorbing sets solution;

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  1. Claude d'Aspremont & Alexis Jacquemin & Jean Jaskold Gabszewicz & John A. Weymark, 1983. "On the Stability of Collusive Price Leadership," Canadian Journal of Economics, Canadian Economics Association, vol. 16(1), pages 17-25, February.
  2. Michael Hoel, 1992. "International environment conventions: The case of uniform reductions of emissions," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 2(2), pages 141-159, March.
  3. Ray, Debraj & Vohra, Rajiv, 1997. "Equilibrium Binding Agreements," Journal of Economic Theory, Elsevier, vol. 73(1), pages 30-78, March.
  4. Debraj Ray & Rajiv Vohra, 2001. "Coalitional Power and Public Goods," Journal of Political Economy, University of Chicago Press, vol. 109(6), pages 1355-1384, December.
  5. Barrett, Scott, 1994. "Self-Enforcing International Environmental Agreements," Oxford Economic Papers, Oxford University Press, vol. 46(0), pages 878-94, Supplemen.
  6. Elena Inarra & Jeroen Kuipers & N. Olaizola, 2005. "Absorbing and generalized stable sets," Social Choice and Welfare, Springer, vol. 24(3), pages 433-437, 06.
  7. Sylvie Thoron, 1998. "Formation of a Coalition-Proof Stable Cartel," Canadian Journal of Economics, Canadian Economics Association, vol. 31(1), pages 63-76, February.
  8. Olaizola Ortega, María Norma & Kuipers, Jerome & Iñarra García, María Elena, 2001. "Absorbing Sets in Coalitional Systems," BILTOKI 2002-01, Universidad del País Vasco - Departamento de Economía Aplicada III (Econometría y Estadística).
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