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North-South Climate Change Negotiations: a Sequential Game with Asymmetric Information

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  • Alejandro Caparrós

    (CNRS-EHESS-CIRED, France)

  • Jean-Christophe Pereau

    (OEP, University of Marne-la-Vallée, France)

  • Tarik Tazdaït

    (CNRS-EHESS-CIRED, France)

Abstract

This article determines the conditions under which the Southern countries should act together, or separately, while negotiating with the North about climate change policy and about the conditions for future Southern engagement. The paper models the international negotiations with complete and with asymmetric information in a dynamic framework. Results show that, depending on their characteristics, the different players can obtain benefits delaying the moment of the agreement.

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Paper provided by Fondazione Eni Enrico Mattei in its series Working Papers with number 2003.09.

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Date of creation: Jan 2003
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Handle: RePEc:fem:femwpa:2003.09

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Keywords: Bargaining theory; asymmetric information; climate change; international cooperation;

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  1. Martin J. Osborne & Ariel Rubinstein, 2005. "Bargaining and Markets," Levine's Bibliography 666156000000000515, UCLA Department of Economics.
  2. Chander, P. & Tulkens, H., . "The core of an economy with multilateral environmental externalities," CORE Discussion Papers RP -1276, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
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  4. Yukihiko Funaki & Takehiko Yamato, 1999. "The core of an economy with a common pool resource: A partition function form approach," International Journal of Game Theory, Springer, vol. 28(2), pages 157-171.
  5. Carsten Helm, 2001. "On the existence of a cooperative solution for a coalitional game with externalities," International Journal of Game Theory, Springer, vol. 30(1), pages 141-146.
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  7. Harsanyi, John C, 1995. "Games with Incomplete Information," American Economic Review, American Economic Association, vol. 85(3), pages 291-303, June.
  8. Ariel Rubinstein, 2010. "Perfect Equilibrium in a Bargaining Model," Levine's Working Paper Archive 252, David K. Levine.
  9. Henry Van Egteren & Jianmin Tang, 1997. "Maxium Victim Benefit: A Fair Division Process in Transboundary Pollution Problems," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 10(4), pages 363-386, December.
  10. Jon Hovi, 2001. "Decentralized Enforcement, Sequential Bargaining and the Clean Development Mechanism," Nordic Journal of Political Economy, Nordic Journal of Political Economy, vol. 27, pages 135-152.
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Cited by:
  1. Leo Wangler & JJuan-Carlos Altamirano-Cabrera & Hans-Peter Weikard, 2011. "The Political Economy of International Environmental Agreements: A Survey," Jena Economic Research Papers 2011-038, Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics.
  2. Michael Finus & Dirk Rübbelke, 2013. "Public Good Provision and Ancillary Benefits: The Case of Climate Agreements," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 56(2), pages 211-226, October.
  3. repec:old:wpaper:336-11 is not listed on IDEAS
  4. Carsten Helm & Franz Wirl, 2011. "International Environmental Agreements: Incentive Contracts with Multilateral Externalities," Working Papers V-336-11, University of Oldenburg, Department of Economics, revised Jun 2011.
  5. Hans-Peter Weikard & Rob Dellink & Ekko Ierland, 2010. "Renegotiations in the Greenhouse," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 45(4), pages 573-596, April.
  6. Pierre Courtois & Guillaume Haeringer, 2012. "Environmental cooperation: ratifying second-best agreements," Public Choice, Springer, vol. 151(3), pages 565-584, June.
  7. Margrethe Aanesen, 2012. "Sequential bargaining, external effects of agreement, and public intervention," Journal of Economics, Springer, vol. 105(2), pages 145-160, March.

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