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International Environmental Agreement: a Dynamic Model of Emissions Reduction

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Author Info
Marta Biancardi ()
Andrea Di Liddo ()
Abstract

We model an International Environmental Agreement as a two stages game: during the first stage each country decides whether or not to join the agreement while, in the second stage, the quantity of emissions reduction is choosen. Players determine their abatement levels in a dynamic setting, given the dynamics of pollution stock and the strategies of other countries. Players may act cooperatively, building coalitions and acting according to the interest of the coalition, or they make their choices taking care of their individual interest only. Countries can behave myopically or in a farsighted way. As a consequence, the size of stable coalition can completely change. A continuous time framework is choosen in the present paper and consequently the problem is studied by a differential game.

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Publisher Info
Paper provided by Dipartimento di Scienze Economiche, Matematiche e Statistiche, Universita' di Foggia in its series Quaderni DSEMS with number 13-2008.

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Length: 17 pages
Date of creation: Sep 2008
Date of revision:
Handle: RePEc:ufg:qdsems:13-2008

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Related research
Keywords: IEA; Differential games; Coalition stability.;

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  1. 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. [Downloadable!]
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  2. Effrosyni Diamantoudi & Eftichios Sartzetakis, 2002. "Stable International Environmental Agreements: An Analytical Approach," Others 0201001, EconWPA. [Downloadable!]
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  3. 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. [Downloadable!] (restricted)
  4. Chander, Parkash & Tulkens, Henry, 1994. "A Core-Theoretic Solution for the Design of Cooperative Agreements on Transfrontier Pollution," Working Papers 897, California Institute of Technology, Division of the Humanities and Social Sciences. [Downloadable!]
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  5. 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)
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  6. Santiago Rubio & Begoña Casino, 2005. "Self-enforcing international environmental agreements with a stock pollutant," Spanish Economic Review, Springer, vol. 7(2), pages 89-109, 06. [Downloadable!] (restricted)
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