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An Evolutionary Approach to International Environmental Agreements with Full Participation

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Listed:
  • Hsiao-Chi Chen

    (National Taipei University)

  • Shi-Miin Liu

    (National Taipei University)

Abstract

Under two often employed imitation mechanisms, we show that an international environmental agreement with full participation can be the unique stochastically stable equilibrium if countries' efficiency of emission reductions is high. By contrast, if the efficiency of emission reduction is low, no agreement among countries to reduce emissions will be the unique stochastically stable equilibrium. We provide the convergence rates to these two equilibria as well. In addition, it is demonstrated that the equilibria are affected by different imitation rules and model's parameters, such as marginal benefits and costs of emission reduction and the number of participating countries.

Suggested Citation

  • Hsiao-Chi Chen & Shi-Miin Liu, 2017. "An Evolutionary Approach to International Environmental Agreements with Full Participation," RIEEM Discussion Paper Series 1702, Research Institute for Environmental Economics and Management, Waseda University.
    • Handle: RePEc:was:dpaper:1702
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    References listed on IDEAS

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    More about this item

    Keywords

    evolutionary game; international environmental agreement; imitations; mutation; long run equilibrium; stochastically stable;
    All these keywords.

    JEL classification:

    • C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

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