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Unilateral Actions the Case of International Environmental Problems

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  • Urs Steiner Brandt

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Abstract

When abatement costs are uncertain, but correlated, and a country becomes pri-vately informed that costs are low, then unilateral actions serve as a signalling devise to reveal low costs and unilateral actions have the potential to trigger positive responses abroad. However, the country engaging in unilateral actions is the one with the highest expectation about the other countries’ reactions, and it might suffer from an effect like the winners curse.

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File URL: http://www.sdu.dk/~/media/Files/Om_SDU/Institutter/Miljo/ime/wp/brandt40.ashx
File Function: First version, 2003-04
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Bibliographic Info

Paper provided by University of Southern Denmark, Department of Environmental and Business Economics in its series Working Papers with number 40/03.

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Length: 48 pages
Date of creation: Apr 2003
Date of revision:
Handle: RePEc:sdk:wpaper:40

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Keywords: International environmental problems; unilateral reductions; signal-ling costs;

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References

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  1. Ben Hermalin, 1996. "Toward an Economic Theory of Leadership: Leading by Example," Working Papers _006, University of California at Berkeley, Haas School of Business.
  2. Michael R. Ransom & Gordon B. Dahl, 1999. "Does Where You Stand Depend on Where You Sit? Tithing Donations and Self-Serving Beliefs," American Economic Review, American Economic Association, vol. 89(4), pages 703-727, September.
  3. Potters, Jan & Sloof, Randolph, 1996. "Interest groups: A survey of empirical models that try to assess their influence," European Journal of Political Economy, Elsevier, vol. 12(3), pages 403-442, November.
  4. Jean-Christophe Pereau & Tarik Tazdait, 2001. "Co-operation and Unilateral Commitment in the Presence of Global Environmental Problems," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 20(3), pages 225-239, November.
  5. Kambhu, John, 1988. "Unilateral disclosure of private information by a regulated firm," Journal of Economic Behavior & Organization, Elsevier, vol. 10(1), pages 57-82, July.
  6. Barrett, Scott, 1994. "Self-Enforcing International Environmental Agreements," Oxford Economic Papers, Oxford University Press, vol. 46(0), pages 878-94, Supplemen.
  7. Hoel, Michael, 1997. "Coordination of environmental policy for transboundary environmental problems?," Journal of Public Economics, Elsevier, vol. 66(2), pages 199-224, November.
  8. Becker, Gary S, 1983. "A Theory of Competition among Pressure Groups for Political Influence," The Quarterly Journal of Economics, MIT Press, vol. 98(3), pages 371-400, August.
  9. Anke Kessler, 1998. "The Value of Ignorance," RAND Journal of Economics, The RAND Corporation, vol. 29(2), pages 339-354, Summer.
  10. Bac, Mehmet, 1996. "Incomplete Information and Incentives to Free Ride on International Environmental Resources," Journal of Environmental Economics and Management, Elsevier, vol. 30(3), pages 301-315, May.
  11. Sandler,Todd, 1997. "Global Challenges," Cambridge Books, Cambridge University Press, number 9780521583077, October.
  12. Barrett, Scott, 1998. "Political Economy of the Kyoto Protocol," Oxford Review of Economic Policy, Oxford University Press, vol. 14(4), pages 20-39, Winter.
  13. Hoel, Michael, 1991. "Global environmental problems: The effects of unilateral actions taken by one country," Journal of Environmental Economics and Management, Elsevier, vol. 20(1), pages 55-70, January.
  14. Urs Steiner Brandt, 2002. "Actions Prior to Entering an International Environmental Agreement," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 158(4), pages 695-, December.
  15. Matthew Rabin., 1997. "Psychology and Economics," Economics Working Papers 97-251, University of California at Berkeley.
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Citations

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Cited by:
  1. Ana Espínola-Arredondo & Félix Muñoz-García, 2011. "Free-riding in international environmental agreements: A signaling approach to non-enforceable treaties," Journal of Theoretical Politics, , vol. 23(1), pages 111-134, January.
  2. Michael Jakob & Kai Lessmann, 2012. "Signaling in international environmental agreements: the case of early and delayed action," International Environmental Agreements: Politics, Law and Economics, Springer, vol. 12(4), pages 309-325, November.
  3. Konrad, Kai A. & Thum, Marcel, 2011. "Unilateral action and negotiations about climate policy," Discussion Papers, Research Professorship & Project "The Future of Fiscal Federalism" SP II 2011-109, Social Science Research Center Berlin (WZB).
  4. Voß, Achim, 2013. "How disagreement about social costs leads to inefficient energy productivity investment," CAWM Discussion Papers 62, Center of Applied Economic Research Münster (CAWM), University of Münster.
  5. Gregor Schwerhoff, 2013. "Leadership and International Climate Cooperation," Working Papers 2013.97, Fondazione Eni Enrico Mattei.
  6. Urs Steiner Brandt & Gert Tinggaard Svendsen, 2003. "Fighting windmills? EU industrial interests and global climate negotiations," Working Papers 37/03, University of Southern Denmark, Department of Environmental and Business Economics.
  7. Eskeland, Gunnar S., 2013. "Leadership in Climate Policy: Is there a case for Early Unilateral Unconditional Emission Reductions?," Discussion Papers 2013/6, Department of Business and Management Science, Norwegian School of Economics.
  8. Urs Steiner Brandt & Gert Tinggaard Svendsen, 2004. "Fighting Windmills: The Coalition of Industrialists and Environmentalists in the Climate Change Issue," International Environmental Agreements: Politics, Law and Economics, Springer, vol. 4(4), pages 327-337, December.
  9. Köke, Sonja & Lange, Andreas, 2013. "Negotiating Environmental Agreements under Ratification Uncertainty," Annual Conference 2013 (Duesseldorf): Competition Policy and Regulation in a Global Economic Order 79952, Verein für Socialpolitik / German Economic Association.

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