Endogenous Participation in a Partial Climate Agreement with Open Entry: A Numerical Assessment
AbstractOur purpose is to analyse the effectiveness and efficiency of a Partial Climate Agreement with open entry under a non-cooperative Nash-Equilibrium framework. We evaluate a partial agreement policy in which non-signatory countries can decide to join or to leave a coalition of the willing at any point in time. By means of a simple analytical model and of a numerical integrated assessment model, we assess different coalition structures, and different minimum admission requirements. Our results indicate that a Partial Climate Agreement with open entry can be effective, achieving climate stabilization between 2C and 3C depending on the composition of the coalition of the willing. The policy turns out to be also rather efficient, with only minor losses with respect to a full cooperation agreement. Finally, we quantify the optimal admission requirement in about 40-50% of cumulative abatement.
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Bibliographic InfoPaper provided by Fondazione Eni Enrico Mattei in its series Working Papers with number 2013.60.
Date of creation: Jun 2013
Date of revision:
International Environmental Agreements; Non-Binding Targets; Voluntary Climate Change Actions; Optimal Mitigation Strategies; Fair Burden Sharing in Climate Negotiations; Carbon Leakage;
Find related papers by JEL classification:
- C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
- F18 - International Economics - - Trade - - - Trade and Environment
- Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-07-15 (All new papers)
- NEP-CMP-2013-07-15 (Computational Economics)
- NEP-ENE-2013-07-15 (Energy Economics)
- NEP-ENV-2013-07-15 (Environmental Economics)
- NEP-GTH-2013-07-15 (Game Theory)
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