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Equity, Heterogeneity and International Environmental Agreements

  • Kolstad Charles D

    ()

    (University of California, Santa Barbara)

Much of the literature on international environmental agreements (IEA) considers the case of identical countries. There is a much smaller literature concerning the more complex but more realistic case of country heterogeneity. This paper involves modifying the standard static homogeneous country model of international environmental agreements. In particular, we consider two types of countries, differing in size as well as in marginal damage from pollution. Although the IEA does not have a unique size in this case, we do introduce two equilibrium refinements and explore the implications for coalition size. The two refinements include one based on efficiency and one based on equity.

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Article provided by De Gruyter in its journal The B.E. Journal of Economic Analysis & Policy.

Volume (Year): 10 (2010)
Issue (Month): 2 (October)
Pages: 1-17

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Handle: RePEc:bpj:bejeap:v:10:y:2010:i:2:n:3
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  1. Rubio, S. J. & Ulph, A., 2002. "An infinite-horizon model of dynamic membership of international environmental agreements," Discussion Paper Series In Economics And Econometrics 0210, Economics Division, School of Social Sciences, University of Southampton.
  2. Charles Kolstad, 2005. "Piercing the Veil of Uncertainty in Transboundary Pollution Agreements," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 31(1), pages 21-34, 05.
  3. R. Mark Isaac & James M. Walker, 1988. "Group Size Effects in Public Goods Provision: The Voluntary Contributions Mechanism," The Quarterly Journal of Economics, Oxford University Press, vol. 103(1), pages 179-199.
  4. Michael Finus, 2001. "Game Theory and International Environmental Cooperation," Books, Edward Elgar Publishing, number 2118, June.
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  7. Alistair Ulph, 2004. "Stable International Environmental Agreements with a Stock Pollutant, Uncertainty and Learning," Journal of Risk and Uncertainty, Springer, vol. 29(1), pages 53-73, 07.
  8. Carraro, Carlo & Siniscalco, Domenico, 1993. "Strategies for the international protection of the environment," Journal of Public Economics, Elsevier, vol. 52(3), pages 309-328, October.
  9. d'ASPREMONT, Claude & JACQUEMIN, Alexis & GABSZEWICZ, Jean J. & WEYMARK, John A., . "On the stability of collusive price leadership," CORE Discussion Papers RP 522, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  10. Roger Guesnerie & Henry Tulkens (ed.), 2009. "The Design of Climate Policy," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262073021, March.
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  12. Nicholas E. Burger & Charles D. Kolstad, 2009. "Voluntary Public Goods Provision, Coalition Formation, and Uncertainty," NBER Working Papers 15543, National Bureau of Economic Research, Inc.
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