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Can International Environmental Cooperation Be Bought?

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Author Info

  • 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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Related research

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

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Cited by:
  1. Michael Finus & Pedro Pintassilgo, 2010. "International Environmental Agreements under Uncertainty: Does the Veil of Uncertainty Help?," Working Papers 2010.79, Fondazione Eni Enrico Mattei.
  2. 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.
  3. 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.
  4. Michael Finus & Pedro Pintassilgo & Marko Lindroos & Gordon Munro, 2008. "Stability and Success of Regional Fisheries Management Organizations," Working Papers 2008.20, Fondazione Eni Enrico Mattei.
  5. Beard, Rodney & Mallawaarachchi, Thilak, 2011. "Are international environmental agreements stable ex-post?," MPRA Paper 34303, University Library of Munich, Germany.

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