International Environmental Agreement: a Dynamic Model of Emissions Reduction
AbstractWe 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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Bibliographic InfoPaper provided by Dipartimento di Scienze Economiche, Matematiche e Statistiche, Universita' di Foggia in its series Quaderni DSEMS with number 13-2008.
Length: 17 pages
Date of creation: Sep 2008
Date of revision:
IEA; Differential games; Coalition stability.;
This paper has been announced in the following NEP Reports:
- NEP-ALL-2008-10-13 (All new papers)
- NEP-CDM-2008-10-13 (Collective Decision-Making)
- NEP-ENE-2008-10-13 (Energy Economics)
- NEP-ENV-2008-10-13 (Environmental Economics)
- NEP-GTH-2008-10-13 (Game Theory)
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