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New Roads to International Environmental Agreements: The Case of Global Warming

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Author Info
Johan Eyckmans () (K.U.Leuven-Center for Economic Studies and EHSAL Europese Hogeschool Brussel)
Michael Finus () (Department of Economics, University of Hagen,)

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Abstract

We analyze with an integrated assessment model of climate change the formation of international environmental agreements (IEAs) by applying the widely used concept of internal& external stability and several modifications of it. We relax the assumptions of a single agreement and open membership rule. It turns out that regional agreements are superior to a single agreement and exclusive is superior to open membership in welfare and ecological terms. Moreover, we show the importance of transfers for successful treaty-making. We relate our results to the design of current and past IEAs as well as to other issues of international policy coordination.

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Publisher Info
Paper provided by Katholieke Universiteit Leuven, Centrum voor Economische Studiën, Energy, Transport and Environment in its series Energy, Transport and Environment Working Papers Series with number ete0318.

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Length: 38 pages
Date of creation: Dec 2003
Date of revision:
Handle: RePEc:ete:etewps:ete0318

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Web page: http://www.econ.kuleuven.be/ew/academic/energmil
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Related research
Keywords: design of climate treaty protocol; coalition formation; non-cooperative game theory;

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Find related papers by JEL classification:
C68 - Mathematical and Quantitative Methods - - Mathematical Methods and Programming - - - Computable General Equilibrium Models
C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
Q25 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Water

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References listed on IDEAS
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.:
  1. Buchner, Barbara & Carraro, Carlo & Cersosimo, Igor & Marchiori, Carmen, 2002. "Back to Kyoto? US Participation and the Linkage Between R&D and Climate Cooperation," CEPR Discussion Papers 3299, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
    Other versions:
  2. EYCKMANS, Johan & TULKENS, Henry, 1999. "Simulating with rice coalitionally stable burden sharing agreements for the climate change problem," CORE Discussion Papers 1999026, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE). [Downloadable!]
    Other versions:
  3. Finus, Michael & Rundshagen, Bianca, 1998. " Toward a Positive Theory of Coalition Formation and Endogenous Instrumental Choice in Global Pollution Control," Public Choice, Springer, vol. 96(1-2), pages 145-86, July. [Downloadable!] (restricted)
  4. Michael Finus & Bianca Rundshagen, 2003. "How the Rules of Coalition Formation Affect Stability of International Environmental Agreements," Working Papers 2003.62, Fondazione Eni Enrico Mattei. [Downloadable!]
  5. Michael Finus & Bianca Rundshagen, 2003. "A Non-cooperative Foundation of Core-Stability in Positive Externality NTU-Coalition Games," Working Papers 2003.31, Fondazione Eni Enrico Mattei. [Downloadable!]
  6. Carraro, Carlo & Marchiori, Carmen, 2002. "Stable Coalitions," CEPR Discussion Papers 3258, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
  7. Chander, Parkash & Tulkens, Henry, 1994. "A Core-Theoretic Solution for the Design of Cooperative Agreements on Transfrontier Pollution," Working Papers 897, California Institute of Technology, Division of the Humanities and Social Sciences. [Downloadable!]
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  8. Chander, Parkash & Tulkens, Henry & Ypersele, Jean-Pascal van & Willems, Stephane, 1999. "The Kyoto Protocol: An Economic and Game Theoretic Interpretation," CESifo Working Paper Series CESifo Working Paper No. , CESifo Group Munich. [Downloadable!]
    Other versions:
  9. Johan Eyckmans, 2001. "On the farsighted stability of the Kyoto Protocol," Energy, Transport and Environment Working Papers Series ete0103, Katholieke Universiteit Leuven, Centrum voor Economische Studiën, Energy, Transport and Environment. [Downloadable!]
  10. Michael Finus & Ekko Ierland & Rob Dellink, 2006. "Stability of Climate Coalitions in a Cartel Formation Game," Economics of Governance, Springer, vol. 7(3), pages 271-291, August. [Downloadable!] (restricted)
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  11. Barbara Buchner & Carlo Carraro, 2003. "Emissions Trading Regimes and Incentives to Participate in International Climate Agreements," Working Papers 2003.104, Fondazione Eni Enrico Mattei. [Downloadable!]
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  12. Kverndokk, S., 1992. "Tradeable CO2 Emission Permits: Initial Distribution as a Justice Problem," Memorandum 23/1992, Oslo University, Department of Economics.
  13. 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. [Downloadable!]
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  14. 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. [Downloadable!] (restricted)
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  15. Guttman, Joel M., 1998. "Unanimity and majority rule: the calculus of consent reconsidered," European Journal of Political Economy, Elsevier, vol. 14(2), pages 189-207, May. [Downloadable!] (restricted)
  16. Rubio, S. & Ulph, A., 2002. "A Simple Dynamic Model Of International Environmental Agreements With A Stock Pollutant," Discussion Paper Series In Economics And Econometrics 0209, Economics Division, School of Social Sciences, University of Southampton.
  17. Johan Eyckmans, 1999. "Strategy Proof Uniform Effort Sharing Schemes For Transfrontier Pollution Problems," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 14(2), pages 165-189, September. [Downloadable!] (restricted)
  18. Bosello, Francesco & Buchner, Barbara & Carraro, Carlo & Raggi, Davide, 2003. "Can Equity Enhance Efficiency? Some Lessons from Climate Negotiations," CEPR Discussion Papers 3606, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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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.)

  1. M Sáiz & Eligius Hendrix & Niels Olieman, 2006. "On the Computation of Stability in Multiple Coalition Formation Games," Computational Economics, Springer, vol. 28(3), pages 251-275, October. [Downloadable!] (restricted)
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