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Modesty Pays: Sometimes! Author info | Abstract | Publisher info | Download info | Related research | Statistics Michael Finus (Department of Economics, University of Hagen)
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Standard non-cooperative game theoretical models of international environmental agreements (IEAs) draw a pessimistic picture of the prospective of successful cooperation: only small coalitions are stable that achieve only little. However, there also exist IEAs with higher participation and more success. In order to explain this phenomenon, this paper departs from the standard assumption of joint welfare maximization of coalition members, implying ambitious abatement targets and strong free-riding. Instead, it considers that countries agree on modest emission reduction targets. This may sufficiently raise participation so that the success of treaties improves in terms of global emission reduction and global welfare. Thus, modesty may pay, though the first best optimum cannot be achieved.
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Paper provided by Fondazione Eni Enrico Mattei in its series Working Papers with number
2004.68.
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Date of creation: Apr 2004Date of revision:
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Keywords: International environmental agreements ; Internal&external stability ; Modest emission reduction ; Other versions of this item:
Find related papers by JEL classification: C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games H41 - Public Economics - - Publicly Provided Goods - - - Public Goods Q20 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - General
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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.: Carraro, Carlo & Siniscalco, Domenico, 1995.
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CHANDERÊ, Parkash & TULKENS, Henry, 1994.
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"Quotas May Beat Taxes in a Global Emission Game ,"
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[Downloadable!] (restricted)
Michael Finus & Bianca Rundshagen, 1998.
"Renegotiation–Proof Equilibria in a Global Emission Game When Players Are Impatient ,"
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Carlo Carraro & Carmen Marchiori & Sonia Oreffice, 2003.
"Endogenous Minimum Participation in International Environmental Treaties ,"
Working Papers
2003.113, Fondazione Eni Enrico Mattei.
[Downloadable!]
Other versions:
Carraro, Carlo & Marchiori, Carmen & Oreffice, Sonia, 2004.
"Endogenous Minimum Participation in International Environmental Treaties ,"
CEPR Discussion Papers
4281, C.E.P.R. Discussion Papers.
[Downloadable!] (restricted) Carlo Carraro & Carmen Marchiori & Sonia Oreffice, 2009.
"Endogenous Minimum Participation in International Environmental Treaties ,"
Environmental & Resource Economics ,
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[Downloadable!] (restricted) Michael Hoel & Kerstin Schneider, 1997.
"Incentives to participate in an international environmental agreement ,"
Environmental & Resource Economics ,
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[Downloadable!] (restricted)
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!]
Other versions: 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)
Other versions: Böhringer, Christoph & Vogt, Carsten, 2002.
"Dismantling of a breakthrough : the Kyoto Protocol - just symbolic policy! ,"
ZEW Discussion Papers
02-25, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
[Downloadable!]
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references 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.)
Arthur Caplan & Emilson Silva, 2007.
"An equitable, efficient and implementable scheme to control global carbon dioxide emissions ,"
International Tax and Public Finance ,
Springer, vol. 14(3), pages 263-279, June.
[Downloadable!] (restricted)
Other versions: Arthur Caplan, 2006.
"A Comparison of Emission Taxes and Permit Markets for Controlling Correlated Externalities ,"
Environmental & Resource Economics ,
European Association of Environmental and Resource Economists, vol. 34(4), pages 471-492, August.
[Downloadable!] (restricted)
Michael Finus & Juan-Carlos Altamirano-Cabrera & Ekko Ierland, 2005.
"The effect of membership rules and voting schemes on the success of international climate agreements ,"
Public Choice ,
Springer, vol. 125(1), pages 95-127, July.
[Downloadable!] (restricted)
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