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Flexibility Provisions in Multilateral Environmental Treaties

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Author Info
Boockmann, Bernhard
Thurner, Paul W.

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Abstract

In international politics, intergovernmental treaties provide the rules of the game. Similar to private law, treaty designers face a trade-off between flexibility to adjust to unforeseen contingencies and the danger that the binding nature of the treaty and hence, the level of commitment by treaty members, is being undermined if the treaty can be amended too easily. In this paper, we address this problem in the analytical framework of institutional economics, drawing in particular on the incomplete contracts literature. Furthermore, we derive preliminary hypotheses and operational concepts for the measurement of flexibility in international treaties. Based on 400 treaties and supplementary agreements from the field of international environmental law, we provide new insights into the combined application of rules for adoption and entry into force of amendments, as well as provisions for conflict resolution and interpretative development. Using correspondence analysis, we show that treaty provisions can be represented in a two-dimensional property space, where treaties can be arrayed according to the degree of institutionalisation as well as along a flexibility dimension. --

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Paper provided by ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research in its series ZEW Discussion Papers with number 02-44.

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Date of creation: 2002
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Handle: RePEc:zbw:zewdip:674

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  1. Rogerson, William P, 1992. "Contractual Solutions to the Hold-Up Problem," Review of Economic Studies, Blackwell Publishing, vol. 59(4), pages 777-93, October. [Downloadable!] (restricted)
  2. Hart, Oliver & Moore, John, 1990. "Property Rights and the Nature of the Firm," Journal of Political Economy, University of Chicago Press, vol. 98(6), pages 1119-58, December. [Downloadable!] (restricted)
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  3. Schmitz, Patrick W., 2001. "The Hold-Up Problem and Incomplete Contracts: A Survey of Recent Topics in Contract Theory," MPRA Paper 12562, University Library of Munich, Germany. [Downloadable!]
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  4. Barbara Koremenos, 2001. "Loosening the Ties that Bind: A Learning Model of Agreement Flexibility," International Organization, MIT Press, vol. 55(2), pages 289-325, June. [Downloadable!] (restricted)
  5. Thompson, Alexander, 2002. "Applying Rational Choice Theory to International Law: The Promise and Pitfalls," Journal of Legal Studies, University of Chicago Press, vol. 31(1), pages S285-306, January.
  6. Hart, Oliver D & Moore, John, 1988. "Incomplete Contracts and Renegotiation," Econometrica, Econometric Society, vol. 56(4), pages 755-85, July. [Downloadable!] (restricted)
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  7. Rosendorff, B. Peter V. & Milner, Helen, 2001. "The Optimal Design of International Trade Institutions: Uncertainty and Escape," International Organization, Cambridge University Press, vol. 55(04), pages 829-857, November. [Downloadable!]
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  8. Klein, Benjamin & Crawford, Robert G & Alchian, Armen A, 1978. "Vertical Integration, Appropriable Rents, and the Competitive Contracting Process," Journal of Law & Economics, University of Chicago Press, vol. 21(2), pages 297-326, October.
  9. Aghion, Philippe & Dewatripont, Mathias & Rey, Patrick, 1994. "Renegotiation Design with Unverifiable Information," Econometrica, Econometric Society, vol. 62(2), pages 257-82, March. [Downloadable!] (restricted)
  10. Jolls, Christine, 1997. "Contracts as Bilateral Commitments: A New Perspective on Contract Modification," Journal of Legal Studies, University of Chicago Press, vol. 26(1), pages 203-37, January.
  11. Alan Schwartz, 2004. "The Law and Economics of Costly Contracting," Journal of Law, Economics and Organization, Oxford University Press, vol. 20(1), pages 2-31, April.
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  12. Koremenos, Barbara, 2001. "Loosening the Ties that Bind: A Learning Model of Agreement Flexibility," International Organization, Cambridge University Press, vol. 55(02), pages 289-325, April. [Downloadable!]
  13. Jean Tirole, 1999. "Incomplete Contracts: Where Do We Stand?," Econometrica, Econometric Society, vol. 67(4), pages 741-782, July.
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