Largest Consistent Set in International Environmental Agreements
AbstractIn this paper we study the formation and the stability of International Environmental Agreements (IEAs) in a pollution abatement model with a quadratic cost function. Countries play a two-stage game: in the ﬁrst stage each country decides to join or not the coalition while, in the -second stage, the quantity of pollution abatement is chosen. To analyze the stability of coalition structures in a multiple coalition game, we use the notion of the Largest Consistent Set (LCS) which allows players to be farsighted.In an abstract context, Chwe (1994) developed the concept of farsighted stability: an outcome is stable and it is in the LCS if and only if deviations from it or potential further deviations are not unanimously preferred to the original outcome by the coalition considering the deviations. Applying this notion of stability in the IEA context we assume that, when a country or a sub-coalition contemplate exiting or joining an agreement, it takes into account the reactions of other countries ignited by its own actions. We identify what would be the resulting stable structures and the LCS, examining the indicator of countries’ environmental awareness proposed by the model. A particular analysis is proposed about the Grand Coalition. Moreover, we present a handy Maple algorithm to compare the cost functions and to determine direct dominance.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Dipartimento di Scienze Economiche, Matematiche e Statistiche, Universita' di Foggia in its series Quaderni DSEMS with number 04-2011.
Date of creation: Apr 2011
Date of revision:
IEA; Farsightedness; Implementation.;
Find related papers by JEL classification:
- F50 - International Economics - - International Relations, National Security, and International Political Economy - - - General
- C60 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - General
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-07-13 (All new papers)
- NEP-ENE-2011-07-13 (Energy Economics)
- NEP-ENV-2011-07-13 (Environmental Economics)
- NEP-GTH-2011-07-13 (Game Theory)
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.:
- DIAMANTOUDI, Effrosyni & SARTZETAKIS, Eftichios, 2002.
"International environmental agreements - The role of foresight,"
CORE Discussion Papers
2002061, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Effrosyni Diamantoudi & Eftichios S. Sartzetakis, . "International Environmental Agreements -The Role of Foresight," Economics Working Papers 2002-10, School of Economics and Management, University of Aarhus.
- Dritan Osmani & Richard Tol, 2010. "The Case of two Self-Enforcing International Agreements for Environmental Protection with Asymmetric Countries," Computational Economics, Society for Computational Economics, vol. 36(2), pages 93-119, August.
- Ana Mauleon & Vincent Vannetelbosch, 2004.
"Farsightedness and Cautiousness in Coalition Formation Games with Positive Spillovers,"
Theory and Decision,
Springer, vol. 56(3), pages 291-324, 05.
- MAULEON, Ana & VANNETELBOSCH, Vincent, . "Farsightedness and cautiousness in coalition formation games with positive spillovers," CORE Discussion Papers RP -1729, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Effrosyni Diamantoudi & Eftichios S. Sartzetakis, 2006.
"Stable International Environmental Agreements: An Analytical Approach,"
Journal of Public Economic Theory,
Association for Public Economic Theory, vol. 8(2), pages 247-263, 05.
- Effrosyni Diamantoudi & Eftichios Sartzetakis, 2002. "Stable International Environmental Agreements: An Analytical Approach," Others 0201001, EconWPA.
- Effrosyni Diamantoudi & Eftichios S. Sartzetakis, 2001. "Stable International Environmental Agreements: An Analytical Approach," Working Papers 04001, Concordia University, Department of Economics, revised Feb 2003.
- Effrosyni Diamantoudi & Sartzetakis, Eftichios, . "Stable International Environmental Agreements: An Analytical Approach," Economics Working Papers 2001-10, School of Economics and Management, University of Aarhus.
- Johan Eyckmans, 2001. "On the farsighted stability of the Kyoto Protocol," Energy, Transport and Environment Working Papers Series ete0103, Katholieke Universiteit Leuven, Centrum voor Economische Studiën, Energy, Transport and Environment.
- Michael Hoel, 1992. "International environment conventions: The case of uniform reductions of emissions," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 2(2), pages 141-159, March.
- d'ASPREMONT, Claude & JACQUEMIN, Alexis & GABSZEWICZ, Jean J. & WEYMARK, John A., .
"On the stability of collusive price leadership,"
CORE Discussion Papers RP
-522, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- 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.
- Carraro, Carlo & Siniscalco, Domenico, 1991. "Strategies for the International Protection of the Environment," CEPR Discussion Papers 568, C.E.P.R. Discussion Papers.
- Alistair Ulph & Santiago J. Rubio, 2004.
"Self-Enforcing International Environmental Agreements Revisited,"
Working Papers. Serie AD
2004-23, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
- Santiago J. Rubio & Alistair Ulph, 2006. "Self-enforcing international environmental agreements revisited," Oxford Economic Papers, Oxford University Press, vol. 58(2), pages 233-263, April.
- de Zeeuw, Aart, 2008.
"Dynamic effects on the stability of international environmental agreements,"
Journal of Environmental Economics and Management,
Elsevier, vol. 55(2), pages 163-174, March.
- Aart de Zeeuw, 2005. "Dynamic Effects on the Stability of International Environmental Agreements," Working Papers 2005.41, Fondazione Eni Enrico Mattei.
- Marta Biancardi & Giovanni Villani, 2010. "International Environmental Agreements with Asymmetric Countries," Computational Economics, Society for Computational Economics, vol. 36(1), pages 69-92, June.
- Ray, D. & Vohra, R., 1993.
"Equilibrium Binding Agreements,"
21, Boston University - Department of Economics.
- M Sáiz & Eligius Hendrix & Niels Olieman, 2006. "On the Computation of Stability in Multiple Coalition Formation Games," Computational Economics, Society for Computational Economics, vol. 28(3), pages 251-275, October.
- Licun Xue, 1998. "Coalitional stability under perfect foresight," Economic Theory, Springer, vol. 11(3), pages 603-627.
- Barrett, Scott, 1994. "Self-Enforcing International Environmental Agreements," Oxford Economic Papers, Oxford University Press, vol. 46(0), pages 878-94, Supplemen.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Luca Grilli).
If references are entirely missing, you can add them using this form.