Carlo Carraro () (Department of Economics, University Of Venice Ca’ Foscari) Johan Eyckmans (European University College Brussels EHSAL and Center for Economic Studies, Katholieke Universiteit Leuven.) Michael Finus (Department of Economics, University of Hagen and National University of Singapore)
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The literature on international environmental agreements has recognized the role transfers play in encouraging participation in international environmental agreements. However, the results achieved so far are overly specific. Therefore, we develop a more general framework that enables us to study the role of transfers in a systematic way. We propose transfers using both internal and external financial resources for making “welfare optimal agreements” self-enforcing. To illustrate the relevance of our transfer scheme, we use a stylized integrated assessment simulation model of climate change to show how appropriate transfers may induce almost all countries into signing a self-enforcing climate treaty.
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Paper provided by University of Venice "Ca' Foscari", Department of Economics in its series Working Papers with number
2006_44.
Find related papers by JEL classification: C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies Q25 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Water Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy
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Martin L. Weitzman, 2001.
"Gamma Discounting,"
American Economic Review,
American Economic Association, vol. 91(1), pages 260-271, March.
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