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Can International Environmental Cooperation Be Bought?

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  • Fuentes Albero Cristina

    ()
    (UNIVERSITY OF PENNSYLVANIA)

  • Rubio Jorge Santiago J.

    ()
    (UNIVERSITY OF PENNSYLVANIA UNIVERSITY OF VALENCIA)

Abstract

In this working paper a two-stage game of international environmental agreement formation with asymmetric countries is analytically solved. The equilibrium of the game allows to determine the number of countries interested in signing the agreement. Two cases are studied. In the first case, the countries differ only in the abatement costs, and in the second case, in the environmental damages. In both cases, two different institutional settings, one without side payments and another with side payments, are considered. The results establish that the asymmetry assumption has no important effects on the scope of cooperation in comparison with the symmetric case if side payments are not used or the only difference among countries is given by the abatement costs. However, when the only difference is given by the environmental damages, the result is that the level of cooperation that can be bought through a self-financed side payment system increases with the degree of asymmetry.

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Bibliographic Info

Paper provided by Fundacion BBVA / BBVA Foundation in its series Working Papers with number 2010101.

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Length: 55
Date of creation: Mar 2008
Date of revision:
Handle: RePEc:fbb:wpaper:2010101

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Keywords: Self-enforcing international environmental agreements; linear environmental damages; public bad.;

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Cited by:
  1. Finus, Michael & Pintassilgo, Pedro, 2010. "International Environmental Agreements under Uncertainty: Does the Veil of Uncertainty Help?," Spatial and Organizational Dynamics Discussion Papers 2010-7, CIEO-Research Centre for Spatial and Organizational Dynamics, University of Algarve.
  2. Thomas Eichner & Rüdiger Pethig, 2012. "Stable climate coalitions (Nash) and international trade," Volkswirtschaftliche Diskussionsbeiträge 155-12, Universität Siegen, Fakultät Wirtschaftswissenschaften, Wirtschaftsinformatik und Wirtschaftsrecht.
  3. Pedro Pintassilgo & Michael Finus & Marko Lindroos & Gordon Munro, 2010. "Stability and Success of Regional Fisheries Management Organizations," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 46(3), pages 377-402, July.
  4. Eyckmans, Johan & Finus, Michael & Mallozzi, Lina, 2011. "A New Class of Welfare Maximizing Stable Sharing Rules for Partition Function Games with Externalities," Working Papers 2011/08, Hogeschool-Universiteit Brussel, Faculteit Economie en Management.
  5. Jonathan Colmer, 2011. "Asymmetry, optimal transfers and international environmental agreements," Grantham Research Institute on Climate Change and the Environment Working Papers 66, Grantham Research Institute on Climate Change and the Environment.
  6. Dellink, Rob & Finus, Michael, 2012. "Uncertainty and climate treaties: Does ignorance pay?," Resource and Energy Economics, Elsevier, vol. 34(4), pages 565-584.
  7. Pierre Courtois & Tarik Tazdaït, 2011. "Bargaining over a climate deal: is it worse to wait and see?," Working Papers 11-07, LAMETA, Universtiy of Montpellier, revised Mar 2011.
  8. Ansink, Erik & Bouma, Jetske, 2013. "Effective support for community resource management," Forest Policy and Economics, Elsevier, vol. 37(C), pages 94-103.
  9. De Zeeuw, A. & Ochea, M., 2013. "Evolution of Reciprocity in Asymmetric International Environmental Negotiations," CeNDEF Working Papers 13-09, Universiteit van Amsterdam, Center for Nonlinear Dynamics in Economics and Finance.
  10. Kai Lessmann & Ulrike Kornek & Valentina Bosetti & Rob Dellink & Johannes Emmerling & Johan Eyckmans & Miyuki Nagashima & Hans-Peter Weikard & Zili Yang, 2014. "The Stability and Effectiveness of Climate Coalitions: A Comparative Analysis of Multiple Integrated Assessment Models," Working Papers 2014.05, Fondazione Eni Enrico Mattei.
  11. Wang, Yiming, 2013. "A time-consistent model for cooperation in international pollution control," Economic Modelling, Elsevier, vol. 33(C), pages 500-506.
  12. Gersbach, Hans & Winkler, Ralph, 2012. "Global refunding and climate change," Journal of Economic Dynamics and Control, Elsevier, vol. 36(11), pages 1775-1795.
  13. Glanemann, Nicole, 2012. "Can international environmental cooperation be bought: Comment," European Journal of Operational Research, Elsevier, vol. 216(3), pages 697-699.
  14. Beard, Rodney & Mallawaarachchi, Thilak, 2011. "Are international environmental agreements stable ex-post?," MPRA Paper 34303, University Library of Munich, Germany.

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