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Incentives and Institutions. A Bottom-up Approach to Climate Policy

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  • Carlo Carraro

    ()
    (Department of Economics, University Of Venice Ca’ Foscari)

Abstract

This paper comments and assesses “Fragmented Carbon Markets and Reluctant Nations: Implications for the Design of Effective Architectures”, a paper that David Victor presented at the international workshop on "Architectures for Agreement: Addressing Global Climate Change in the Post-Kyoto World", organized by Joe Aldy and Rob Stavins at the J.F. Kennedy School of Government in May 2006. By analyzing Victor’s proposals for an effective climate agreement post 2012, this paper emphasizes the contribution that game-theoretical analyses have provided to the design of climate agreements. It therefore emphasizes how incentives and institutions play a crucial role in affecting the final outcome of negotiations on climate change control, and how incentives and institutions can be modified to achieve a better control of climate change. This paper also discusses a wider policy approach that can enhance the effectiveness of measures designed to address the climate change problem.

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File URL: http://www.unive.it/media/allegato/DIP/Economia/Working_papers/Working_papers_2006/WP_DSE_Carraro_49_06.pdf
File Function: First version, 2006
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Bibliographic Info

Paper provided by Department of Economics, University of Venice "Ca' Foscari" in its series Working Papers with number 2006_49.

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Length: 15 pages
Date of creation: 2006
Date of revision:
Publication status: Published
Handle: RePEc:ven:wpaper:2006_49

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Related research

Keywords: Agreements; Climate; Incentives; Negotiations; Policy;

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  1. Casella, Alessandra, 1996. "Large Countries, Small Countries and the Enlargement of Trade Blocs," CEPR Discussion Papers 1320, C.E.P.R. Discussion Papers.
  2. 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.
  3. repec:fth:louvco:9908 is not listed on IDEAS
  4. Bond, Eric W. & Syropoulos, Constantinos, 1996. "The size of trading blocs Market power and world welfare effects," Journal of International Economics, Elsevier, vol. 40(3-4), pages 411-437, May.
  5. Carraro, Carlo & Siniscalco, Domenico, 1991. "Strategies for the International Protection of the Environment," CEPR Discussion Papers 568, C.E.P.R. Discussion Papers.
  6. Ray, D. & Vohra, R., 1993. "Equilibrium Binding Agreements," Papers 21, Boston University - Department of Economics.
  7. Baldwin, Richard, 1993. "A Domino Theory of Regionalism," CEPR Discussion Papers 857, C.E.P.R. Discussion Papers.
  8. Robert Reinstein, 2004. "A Possible Way Forward on Climate Change," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 9(3), pages 245-309, July.
  9. BLOCH, Francis & FERRER, Hélène, 1999. "Trade fragmentation and coordination in bilateral oligopolies," CORE Discussion Papers 1999008, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  10. Yi, Sang-Seung, 1997. "Stable Coalition Structures with Externalities," Games and Economic Behavior, Elsevier, vol. 20(2), pages 201-237, August.
  11. Sang-Seung Yi, 1996. "Open Regionalism and World Welfare," Eastern Economic Journal, Eastern Economic Association, vol. 22(4), pages 467-475, Fall.
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