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Dynamic Effects on the Stability of International Environmental Agreements

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  • Aart de Zeeuw

    (Tilburg University)

Abstract

In terms of the number of signatories, one observes both large and small international environmental agreements. The theoretical literature, based on game theory, discusses different concepts and mechanisms for the stability of coalitions and has reached the conclusion that, under farsightedness, both large and small stable coalitions can occur. In the context of a repeated game, this implies that large stable coalitions can also be sustained over time by a simple trigger mechanism, for large enough discount factors. However, if changes in time implement changes in state, this conclusion does not hold anymore: only small stable coalitions can be sustained.

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Paper provided by Fondazione Eni Enrico Mattei in its series Working Papers with number 2005.41.

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Date of creation: Mar 2005
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Handle: RePEc:fem:femwpa:2005.41

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Keywords: IEA’s; Coalitional stability; Dynamics;

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  1. Carraro, Carlo & Siniscalco, Domenico, 1993. "Strategies for the international protection of the environment," Journal of Public Economics, Elsevier, Elsevier, vol. 52(3), pages 309-328, October.
  2. Rubio, Santiago J. & Ulph, Alistair, 2007. "An infinite-horizon model of dynamic membership of international environmental agreements," Journal of Environmental Economics and Management, Elsevier, vol. 54(3), pages 296-310, November.
  3. Ploeg, F. van der & Zeeuw, A.J. de, 1992. "International aspects of pollution control," Open Access publications from Tilburg University urn:nbn:nl:ui:12-377516, Tilburg University.
  4. Chwe Michael Suk-Young, 1994. "Farsighted Coalitional Stability," Journal of Economic Theory, Elsevier, Elsevier, vol. 63(2), pages 299-325, August.
  5. Michael Hoel, 1992. "International environment conventions: The case of uniform reductions of emissions," Environmental & Resource Economics, European Association of Environmental and Resource Economists, European Association of Environmental and Resource Economists, vol. 2(2), pages 141-159, March.
  6. Dockner,Engelbert J. & Jorgensen,Steffen & Long,Ngo Van & Sorger,Gerhard, 2000. "Differential Games in Economics and Management Science," Cambridge Books, Cambridge University Press, number 9780521637329, 9.
  7. Ray, D. & Vohra, R., 1996. "A Theory of Endogenous Coalition Structure," Papers, Boston University - Industry Studies Programme 68, Boston University - Industry Studies Programme.
  8. Effrosyni Diamantoudi & Eftichios S. Sartzetakis, . "International Environmental Agreements -The Role of Foresight," Economics Working Papers, School of Economics and Management, University of Aarhus 2002-10, School of Economics and Management, University of Aarhus.
  9. Claude d'Aspremont & Alexis Jacquemin & Jean Jaskold Gabszewicz & John A. Weymark, 1983. "On the Stability of Collusive Price Leadership," Canadian Journal of Economics, Canadian Economics Association, vol. 16(1), pages 17-25, February.
  10. Chander, P. & Tulkens, H., . "A core-theoretic solution for the design of cooperative agreements on transfrontier pollution," CORE Discussion Papers RP -1158, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  11. Germain, Marc & Toint, Philippe & Tulkens, Henry & de Zeeuw, Aart, 2003. "Transfers to sustain dynamic core-theoretic cooperation in international stock pollutant control," Journal of Economic Dynamics and Control, Elsevier, Elsevier, vol. 28(1), pages 79-99, October.
  12. Yi, Sang-Seung, 1997. "Stable Coalition Structures with Externalities," Games and Economic Behavior, Elsevier, Elsevier, vol. 20(2), pages 201-237, August.
  13. Santiago J. Rubio, 2001. "International Cooperation In Pollution Control," Working Papers. Serie AD, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie) 2001-21, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
  14. Debraj Ray & Rajiv Vohra, 2001. "Coalitional Power and Public Goods," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 109(6), pages 1355-1384, December.
  15. Barrett, Scott, 1994. "Self-Enforcing International Environmental Agreements," Oxford Economic Papers, Oxford University Press, vol. 46(0), pages 878-94, Supplemen.
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  1. > Environmental and Natural Resource Economics > Climate economics > International agreements
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