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An international agreement with full participation to tackle the stock of greenhouse gases

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  • Kratzsch, Uwe
  • Sieg, Gernot
  • Stegemann, Ulrike

Abstract

This paper analyzes greenhouse gas emissions that build up an atmospheric stock which depreciates over time. Weakly renegotiation- proof and subgame perfect equilibria in a game of international emission reduction exist if countries put a sufficiently high weight on future payoffs, even though there is a discontinuity in the required discount factor due to the integrity of the number of punishing countries. Treaties are easier to reach if the gas depreciates slowly. --

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Bibliographic Info

Paper provided by Technische Universität Braunschweig, Economics Department in its series Economics Department Working Paper Series with number 11.

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Date of creation: 2011
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Handle: RePEc:zbw:tbswps:11

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Keywords: global warming; international agreement; weak renegotiation-proofness;

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  1. Froyn, Camilla Bretteville & Hovi, Jon, 2008. "A climate agreement with full participation," Economics Letters, Elsevier, vol. 99(2), pages 317-319, May.
  2. Kratzsch, Uwe & Sieg, Gernot & Stegemann, Ulrike, 2010. "A full participation agreement on global emission reduction through strategic investments in R & D," MPRA Paper 27188, University Library of Munich, Germany.
  3. Scott Barrett, 2002. "Consensus Treaties," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 158(4), pages 529-, December.
  4. Hans-Werner Sinn, 2007. "Public Policies against Global Warming," NBER Working Papers 13454, National Bureau of Economic Research, Inc.
  5. Joseph Farrell and Eric Maskin., 1987. "Renegotiation in Repeated Games," Economics Working Papers 8759, University of California at Berkeley.
  6. Hans-Werner Sinn, 2008. "Public policies against global warming: a supply side approach," International Tax and Public Finance, Springer, vol. 15(4), pages 360-394, August.
  7. Geir Asheim & Bjart Holtsmark, 2009. "Renegotiation-Proof Climate Agreements with Full Participation: Conditions for Pareto-Efficiency," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 43(4), pages 519-533, August.
  8. Evans, Robert & Maskin, Eric, 1989. "Efficient renegotiation--proof equilibria in repeated games," Games and Economic Behavior, Elsevier, vol. 1(4), pages 361-369, December.
  9. Asheim, Geir B. & Froyn, Camilla Bretteville & Hovi, Jon & Menz, Fredric C., 2006. "Regional versus global cooperation for climate control," Journal of Environmental Economics and Management, Elsevier, vol. 51(1), pages 93-109, January.
  10. Dutta, Prajit K. & Radner, Roy, 2009. "A strategic analysis of global warming: Theory and some numbers," Journal of Economic Behavior & Organization, Elsevier, vol. 71(2), pages 187-209, August.
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